BTCUSD Analysis: As we predicted in yesterday’s video, Bitcoin price saw a pullback versus major counterparts including the USD on Monday. This was a result of a combination of market sentiment and fundamental news. Here is the IDDA approach to strategy development for the BTCUSD pair.
Disclaimer: Trading cryptocurrencies could be very risky. Speculative trading is even riskier. Before entering a position, you must calculate your risk tolerance to be able to decide on the investment strategy that is suitable for your portfolio. Attend this free MasterClass to learn more.
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BTCUSD Analysis – Technical Points
The first point of the IDDA focuses on technical analysis. The BTC/USD pair formed an evening star candlestick pattern on the daily chart, after reaching the all-time high above $7,600 last week. The price touched the lows of $6,900 during the intraday trading and closed at around $7,100.
Our key medium-term support level is set at the 38% Fibonacci retracement level of $6,575. This Fibonacci setup retraces the medium-term BTCUSD uptrend from the lows of $3,296 in the middle of October to the record highs above $7,600.
On the 4-hour chart, however, the pair remains supported by the upward-moving Ichimoku cloud. The Kijun line has just broken below the Tenkan line on the Ichimoku Kinko Hyo‘s 4-hour setup. Our key short-term pivot points are set at the 23% and 38% Fibonacci retracement level of $6,870 and $6,651 respectively.
This Fibonacci setup retraces the most recent BTCUSD uptrend from the lows of $5,708 end of October to the record highs above $7,600.
Learn about Ichimoku – Fibonacci Strategy Development
BTCUSD Analysis – Fundamental Points
The second point of the IDDA focuses on fundamental analysis.
The greatest investors ever, Warren Buffett, has recently said that “You can’t value bitcoin because it’s not a value-producing asset. It’s a real bubble in that sort of thing.” This basically means that to him, Cryptocurrencies are not tangible investments. And since the whole cryptocurrency market is not regulated, is not under control, is not under the supervision of any United States Federal Reserve or any other central bank, Buffet thinks it’s going to implode.
I certainly was on the same train for the past 8 years, but as the blockchain industry strengthens its position across different markets, the survival chance of at least some of the superstars of cryptocurrencies, such as Bitcoin, increases
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Sentimental Analysis: The third point of the IDDA focuses on market sentiment. Earlier during Tuesday’s Asian session, the BTCUSD trading crowd showed slight bullish signs. The short-term resistance level is set at $7,147.
Trading Strategy: As the 4th point of the IDDA, you must calculate your risk tolerance before deciding on the investment strategy that is suitable for your portfolio. Join us for a free MasterClass to learn more.
Here are Invest Diva’s calculations for important approximate levels for your BTCUSDanalysis
| Support Levels | Turning Point | Resistance Levels |
|---|---|---|
|
6,107 |
6,651 |
7,147 |
|
6,416 |
6,870 |
7,574 |
As an Invest Diva you should be able to put the 3 and 4 together and develop a strategy suitable for your portfolio and risk tolerance at this time. For further help, and if you want to chat with me regarding your trades, join our investing group here. It’s awesome!!
#1 Best Selling Author. Helping you accelerate your retirement with Triple Compounding™ Former engineer on a mission to help 1 million households take control of their finances. Founder & CEO of Invest Diva.
