Today we will look at different time frames and we will begin with the hourly chart, then the 4 hours and finally the Daily.
1 HOUR (H1)
In this short term time frame we already can identify some minor bullish divergences which triggered this short term reversal which has already crossed over both the TS and KS , facing currently the Mid Bollinger Band which should be seen in this time frame as a good barometer for further development as a confirmation upside breakout of this level would open the door for the next resistance area which is the clouds
resistance zone , currently between 48’000-49’700.
On the downside, a failure to stay and hold(on H1 closing basis !) above 46’650 would be the first warning signal calling for a new downside move towards previous lows and ahead of the former congestion support bottom @ 45’500
4 HOURS (H4)
Last H4 closing level (@ 46’517) triggered a “DOJI” coupled with a bullish divergence which pushed the BTCUSD higher (in doing the last H4 white bullish candle) which closed a couple of minutes ago just below the Tenkan-Sen level.
Therefore, as for H1, next H4 closing level would give more clues about validation or invalidation of what has been seen on H1 and will show the direction for further development.
On the upside, next resistance to look at is the former sideways channel 47’300-48’100 (the latter level coincides roughly with the 23.6 % Fib ret @ 48’117).
Still in its broad sideways 45’500-50’500 trading range with a potential signal of a recovery in progress which should be confirmed by a daily closing, at least above 48’500; indeed, such kind
of recovery price action would neutralize the ongoing downside risk, which is still in place, for the time being.
On the downside the bottom of the sideways channel previously mentioned should be seen as the last support zone before focusing again on the former low (42’000 area) reached on Dec 4th.
Ongoing price action is showing a BTCUSD supported on one hand by the weekly clouds support zone which rejected three times on a row a downside breakout attempt and on the other hand, rejected by the ongoing weekly downtrend line resistance.
Next weekly closing will, “maybe” give more information for the future.
Have a nice day.
Ironman8848 & Jean-Pierre Burki
All views expressed on my analysis are my own and do not represent the opinions of any entity, whatsoever with which I have been, I am now or I will be affiliated with. Any action you take upon the information on those analysis is strictly at your own risk and should not be considered as an advisory. The author assumes no responsibility or liability for any errors or omissions in the content of his analysis. The information contained is provided on an «as is» basis, with no guarantees of completeness, accuracy, usefulness or timeliness and without any warranties of any kind whatsoever, express or implied.