2021/09/26 07:44 AM – H4 – CURRENTLY BELOW THE CLOUDS !

BTCUSD – H4 – CURRENTLY BELOW THE CLOUDS ! by Ironman8848 on TradingView.com

Good morning, today we are going to look at the 4 hours time frame. 


Interesting to note that yesterday’s price action confirmed a sideways move 
in a trading range caught between  KS and  TS and still below both the clouds 
and the Mid  Bollinger Band .


So what next ? 


Looking at this H4 chart we should carefully look at the uptrend line support (in green), and 
currently at around 41’600; indeed, a failure to stay and hold above this area would be the first 
warning signal of a potential downside breakout, calling for lower levels, towards former lows 40’600-39’600.

 
As a gentle remember, the 61.8 %  Fibonacci retracement (28’600-52’956) is @ 37’903 and it is likely to see a test of this level, soon or later !


In order to, firstly, neutralize the ongoing short term downside risk, the  BTCUSD should quickly recover and hold above 42’870/43’184 and then a top clouds breakout confirmation, currently @ 44’200. 


Nevertheless, do not feel happy to early, as if this is happening this would, only be, the first stage of a long journey !!!


Why ? 


Looking at the daily time frame, you can see that the 44’200 coincides with the 50%  Fibonacci retracement of the 48’834-39’573 and also, roughly to the middle of the clouds  resistance area which currently very thick and should be considered as a tough zone to break !!! 


LAST BUT NOT LEAST, DAILY  RSI IS STILL SHOWING CONVERGENCE TO THE DOWNSIDE. 

CONCLUSION : 


ON H4 LEVELS TO WATCH ARE : 


41’600 and 43’184 


[i]For tactical long exposure, look at shorter time frames to get early signal (s) such as  bullish divergence to initiate countertrend positions in making sure that such kind of very short term position should be protected with a tight trailing stop loss !!! 

Have a nice Sunday, have fun and take care. 


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Many thanks in advance. 


Ironman8848

Disclaimer :

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. 

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