BTCUSD made an interesting move yesterday. While buyers were getting ready to ride on the next bullish move, all of a sudden the price came down abruptly. The daily candle closed with a strong bearish note. In fact, it has come out as a bearish engulfing candle. Thus, the buyers have no other choice but to wait for the correction to get over and upside breakout to go long on BTCUSD again.
Let us have a look at the Daily BTCUSD chart (click on it to enlarge).
The Daily Chart
Look at the arrowed candle. The candle has a long spike getting a rejection from the North. The candle closed much below the previous candle’s body’s lowest low. Without any doubt, this kind of daily candle has an influence on the intraday traders. This is what has been happening today as well. Today’s intraday price action has been very bearish. As far as the daily chart is concerned, the price has been having a correction. The obvious question is which level is to be held by the price as the support level or from where it might start up trending again.
Let us have a look at the H4 BTCUSD chart.
The H4 Chart- 1st Potential Support
The H4 chart shows that the level of 8100.00 is a level where the price reacted earlier a number of times. The bearish move has already had a bounce from the level too. This level may be held as the level of support. However, the way the price has been moving towards the South, it might continue going towards the downside by making a breakout at the level of 8100.00. In that case, let us find out what may be the potential support level.
The H4 Chart- 2nd Potential Support
The level of 7772.85 has the potential to hold the price and be the level of support if the current level is breached. The price reacted to the level only once earlier. However, this is a Fibonacci level, thus it might play a very significant role this time. Meanwhile, BTCUSD long traders shall be patient for the correction to get over and wait for the next upside breakout.