Currently, Bitcoin on primexbt exchange is facing a strong bearish trendline resistance. Throughout the past week, Bitcoin has failed to break above this resistance line.
Just like my analysis last week, when Bitcoin first hit this downtrend line, I also predicted Bitcoin to be pushed down.
Figure 1: BTCUSD, COINBASE, EASY Price Chart
On the daily time frame (D) Bitcoin is still at a very strong psychological resistance price area, which is a price area that many traders are interested in.
As you can see in Figure 1, Bitcoin is facing the following resistance levels:
- Old support becomes new resistance
- Price range of exponential moving averages EMA20 and EMA50
- Touching the downtrend line So this is still in a very strong resistance area, this price area we will analyze on 2 different points of view.
1. Bitcoin continues to plummet
This week I am still basing on the Bitcoin analysis from last week to make the next analysis and prediction for this week.
Looking at it objectively on technical analysis, Bitcoin is in a pre-formed downtrend. The downtrend is still the dominant trend. Over the past week Bitcoin has plummeted from the 7450 price area to the 6450 price area, which is also a volatile level.
However, at the time of my analysis Bitcoin bounced back to 7000. Today (April 16) a strong bullish candle, but still has not broken through the previous Downtrend Line resistance.
So, in general, Bitcoin is still under selling pressure due to this strong resistance area.
SELL BTCUSD at 7000 SL 7450 TP(1) 6000 TP (2) 5000. This is still an option for more risky traders, but in return you get into a good price zone, and easily get good profits when the market moves in the right direction.
To be safer, we can choose to wait, wait for today's candle to close, wait for another bearish engulfing reversal candle. Then you can place a stop loss (SL) right at the top of 7450 or closer to the top of the leading bearish candle. and take profit target (TP) at the ratio R:R = 1:1 or R:R = 1: 2. However, now that the market can run a long way, the price you sell at that time is not necessarily good.
Each way has different advantages and disadvantages, you should consider to choose for yourself which way is suitable for your trading method.
See more: Cargill and Rabobank apply Blockchain to the global wheat business
2. Bitcoin broke the downtrend line, bounced strongly
An opposite scenario, breaking of the previous downtrend line, simultaneously forms a strong bullish pattern.
Figure 2: BTCUSD bullish, COINBASE, EASY chart
This is the scenario that is expected by many traders, especially those who put great faith in blockchain technology, as well as the cryptocurrency market.
Figure 2 shows us that there is currently a strong bullish candle that hasn't closed yet, but this is also a positive signal supporting the upcoming uptrend. We need to wait for the next 1 or 2 bullish candles to consolidate this uptrend. Once there, it is likely that Bitcoin will break the downtrend line, and bounce strongly to the next resistance area near 8500. You can place a stop loss (SL) right below the strong bullish candle that breaks the downtrend line. .
3. Summary
Bitcoin is at a very strong psychological resistance area. Should wait for more signal of candlestick pattern to confirm the increase or decrease in this price area.
Above, are the analysis and judgment based on my personal trading system. Hopefully these analyzes and comments help people have a better view of the market. As well as reference to make your trading decisions. Wish you good trading and lots of profit!
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