BTCUSDT. Ranging. Will it Reverse ?
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Hello traders,
BTC here making a decision. It is stuck in a small range between 56k and 59k.
It broke out of a falling wedge that if played out it can retrace to around the 62k area.
The main highlight of this chart are:
1. Bullish MACD divergence, 4hr chart losing downward momentum. (Circled in Pink)
2. RSI coming out of the oversold zone. (Circled in Black)
3. Good buying volume at the 56k level. (Circled in Purple)
Our best guess is that BTC will retrace, but it is difficult to say when selling and buying are in balance, ranges are difficult.
The only thing we don't like is that is in a downward trend. So if we weight in the MACD divergence, the RSI coming out of oversold zone and the solid buying volume then we get a downward trend with losing momentum.
Difficult to say but for us we are a bit biased to a bullish retrace from the 56k, if this level does not holds then we will be looking for a potential reversal from the 51k-52k levels.
Another observation is that lots of traders should have stop limits (or triggers) from outside of the boundaries of the range, so if the range breaks either to the upside or downside those trades will get activated and will either buy the retrace to 62k or short to 52k, also there are lots of stop losses at those levels.
The longer the range gets, the more confidence people get and start putting more and more stop losses outside those boundaries.
Will it retrace at the 56k level ? or will it dump a bit more ? and retrace from lower levels ?
For now we are still sitting it out until we get more confirmations.
Step by step is the best way. Live to fight another day. Best of Best my friend.
Robertus
Hello traders,
BTC here making a decision. It is stuck in a small range between 56k and 59k.
It broke out of a falling wedge that if played out it can retrace to around the 62k area.
The main highlight of this chart are:
1. Bullish MACD divergence, 4hr chart losing downward momentum. (Circled in Pink)
2. RSI coming out of the oversold zone. (Circled in Black)
3. Good buying volume at the 56k level. (Circled in Purple)
Our best guess is that BTC will retrace, but it is difficult to say when selling and buying are in balance, ranges are difficult.
The only thing we don't like is that is in a downward trend. So if we weight in the MACD divergence, the RSI coming out of oversold zone and the solid buying volume then we get a downward trend with losing momentum.
Difficult to say but for us we are a bit biased to a bullish retrace from the 56k, if this level does not holds then we will be looking for a potential reversal from the 51k-52k levels.
Another observation is that lots of traders should have stop limits (or triggers) from outside of the boundaries of the range, so if the range breaks either to the upside or downside those trades will get activated and will either buy the retrace to 62k or short to 52k, also there are lots of stop losses at those levels.
The longer the range gets, the more confidence people get and start putting more and more stop losses outside those boundaries.
Will it retrace at the 56k level ? or will it dump a bit more ? and retrace from lower levels ?
For now we are still sitting it out until we get more confirmations.
Step by step is the best way. Live to fight another day. Best of Best my friend.
Robertus
“All fixed set patterns are incapable of adaptability or pliability. The truth is outside of all fixed patterns” BL
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