BTCUSD technical analysis

BTCUSD technical analysis for January 3rd to January 7th 2022.

1D BTCUSD Key takeaways

Bitcoin is seemingly in a downtrend. But considering it hasnt broken the previous daily low, (ie: where the previous daily retracement ended) it could continue to the uptrend after touching the nearest structure #support.

btcusd technical analysis
BTCUSD_2022-01-04 (1D)

4H BTCUSD key takeaways

Bitcoin has been floating around that H4 structure (green area) not touching the 1D support (black line).

Its possible that price do not break the green area and just push to the upside, but considering it has been in a down trend for the past weeks, it has a higher probability of touching the black line before pushing back to the upside.

BTCUSD
BTCUSD_2022-01-04_(H4)

1H BTCUSD key takeways:

Things are clearer on the H1 timeframe as it regards to the behaviour of BTCUSD price.

As you can see, price is forming a decending triangle price action pattern.

Decending triangle can break to either to the up or down side, but with a greater probability to the downside, hence why it is considered a trend continuation price action pattern. See more about price action patterns here

Price has been having a difficult time breaking the upper trendline (blue line) as such, its been lossing momentum to push to the upside.

Bitcoin
_2022-01-04_(1H)

final thoughts

Until price has broken below the previous daily low, it would still be looking for long (buy) positions. A potential buy area is at the next 1D structure, which is highlighted by the black line below the green area. However patience is needed in a setup like this because rushing in too early can lead to a serious loss.

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2 Replies to “BTCUSD technical analysis”

  1. Great content! Keep up the good work!

  2. This is wonderful.
    thanks

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