3 successive dojis in a row which is showing growing uncertainty about further development which is, for the time being still calling for further downside in this daily time frame.
The ongoing candle is also, showing a doji pattern in progress (validation or invalidation will be given on today’s closing basis).
As already mentioned in my previous analysis, the last couple days price action should be seen as a tactical corrective move and not as a strategic trend reversal yet; indeed, on the daily picture the BTCUSD remains under :
1) the downtrend line resistance (46876)
2) the Mid Bollinger Band (46194)
3) the Kijun-Sen (45828)
4) the Tenkan-Sen (43572)
Corrective move on RSI which is still in a downtrend !
A sustainable move above 43’572 on a daily closing basis would be seen as the first positive signal for a potential continuation of a upside move towards the 3, 2 and 1 levels previously mentioned.
In term of Fibonacci retracement , the first minor one, 23.6% is @ 42’518 ahead of the 38.2% @ 44’348; the 50% is @ 45’828 and this level should be seen as the most important one as it is also the level
of the Kijun-Sen or Base line !
The 41’500-39’500 trading range is very fragile and a failure to hold above 41’500 on a daily closing basis would be an additional warning signal calling for lower levels towards the former low @ 39’500 ahead of lower levels around 37’500 (weekly clouds bottom zone).
Below 36’425 is the 50% Fib ret of the 3’850-69’000 rally.
4 HOURS (H4)
A second RSIbullish divergence triggered the recent tactical corrective recovery from the low of 39’558.70 towards a high so far of 42’642 which should be seen as a pullback towards the former uptrend support line and still below the clouds too.
Watch carefully the 41’800 on H4 closing basis (short term perspective) :
Above 41’800 : BULLISH
Between 41’800-41’100 : NEUTRAL
Below 41’100 : BEARISH
Monitor closely intraday shorter time frames which will validate or invalidate the implications above mentioned in longer time frames.
Have a nice trading day.
Ironman8848 & Jean-Pierre Bürki
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.