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