BTC Update - Support and Resistance

25 Mar 2021

A Quick BTC Update:

Here is a BTC Daily Chart showing what BTC has above and below it as potential support and resistance.

At the moment of typing this, BTC has bounced off its 50EMA and is fighting to get back above its 50% Fibonacci Retracement Level.

It is ideal, but not crucial for BTC to close this daily candle above its 50% Fibonacci Retracement Level tonight. IT IS CRUCIAL however, that BTC closes this daily candle above its 50EMA which it looks like it will do.

At the moment, BTC is below both its Bollinger Bands Middle Band Basis & its Ichimoku Cloud Conversion Line (Tenkan Sen).

The Ichimoku Cloud Lagging Span (Chikou Span) is indicating that momentum is sideways at the moment.

Despite the dip, BTC is still in the Bullish Zone of the Ichimoku Cloud for this timeframe.

Once BTC closes this daily candle safely above the 50EMA, BTC then needs to eventually close a daily candle ABOVE both its Ichimoku Cloud Conversion Line (Tenkan Sen) and its Bollinger Bands Middle Band Basis before any attempt at a new ATH. I stress the case CLOSE because the price can wick high and low due to the volatility.

Hypothetically speaking, if the 50EMA doesn't hold on the daily chart, then the Ichimoku Cloud Base Line (Kijun Sen) and Leading Span A (Senkou Span A) support levels become even more crucial then what the 50EMA was, because breaking down through those levels will take BTC into the Cloud (Kumo) Equilibrium Zone which we do not want to happen.

I hope this is helpful & good luck 👍

27 Mar 2021

Catatan

QUICK UPDATE:



If we look at the daily chart, we can see that the 50EMA held strong on the 25th March. We know that the 50EMA is a crucial support level for this timeframe

BTC has closed yesterday's daily candle above its 50% and 38.2% Fibonacci Retracement Level.

Thankfully, BTC is now further away from its Ichimoku Cloud Base Line (Kijun Sen) and Leading Span A (Senkou Span A) levels.

At the moment, BTC has found support from its 38.2% Fibonacci Retracement Level.

The Ichimoku Cloud Lagging Span (Chikou Span) is indicating momentum is sideways.

The Bollinger Bands Upper Band is still moving inwards & slightly sideways and the Lower Band is still moving upwards, indicating we may be seeing a bit of consolidation with BTC.

BTC needs to cross above and CLOSE a daily candle above both its Ichimoku Cloud Conversion Line (Tenkan Sen) and its Bollinger Bands Middle Band Basis.

The ADX DI SMA is indicating that the BTC Trend Strength is still very weak for this timeframe, with the ADX (Yellow Line) at 14.48 still below its 10 Period SMA (White Line) which is at 22.75. The +DI (Green Line) is at 22.05 and still above its -DI (Red Line) which is at 18.61. For SUSTAINABLE upwards momentum, we need the ADX to cross back over its 10 Period SMA and ideally be over 20 which will be a key signal of Upwards Trend Strength.

We do need to keep an eye on the ADX Trend Strength because it is still quite weak for the daily, a weak uptrend strength means it's more easy for the price to pushed downwards. We also need to see the ADX (Yellow Line) start curving upwards which we will see if this daily candle closes above the 38.2% Fibonacci Retracement Level.

I hope this is helpful. 👍