BTCUSD Technical Analysis UPDATE @ $7412 - Feb 6th 2018
Alrite, quick update on BTC/USD. I've cleaned up my chart and removed the fibs and replaced it with some S/R lines.
Consider these as support and resistance zones. The four I have plotted are around these prices, which I expect to be significant in future price action. So, I'm going as far as to label them.
$9450 "S/R 4"
$8400 "S/R 3"
$7600 "S/R 2"
$5500 "S/R 1"
Today we bounced off of S/R 1. We are testing S/R 2 currently.
What I'm looking for next.
- A retest of S/R 1. As soon as I see some buying pressure at this level I'm dollar cost averaging in a portion of my fiat. If ETH is moving along with BTC, I'm picking up some ETH instead.
- A break of S/R 3 then a dip and bounce off of S/R 3. The goal is to clear this zone. I'm hoping for smoother sailing if it's broken.
See the daily:
On to another point. Let's dive into the 4HR chart. I'm not liking the looks of this in the short term..
We had a good bounce today. But, look at the Kijun line (that red line that we hit today). We tested it and then fell down under it right at $7700. Since, we are in a downtrend, this is indicating to me to expect another drop. I don't know how much of a drop, but drawing down from the Kijun line after testing/breaking it in a downtrend is a continuation signal for further drawdowns. On one hand I'm of course hoping the signal is wrong (and it is many times), but on the other hand, I wouldn't mind another buying opportunity to come up.
This has been an update to: https://steemit.com/bitcoin/@jagr/btcusd-technical-analysis-update-usd6912-feb-6th-2018