BTCUSD made the long-awaited breakout on the daily chart. After the breakout, it produced a bullish daily candle as well. However, yesterday’s daily candle had rather a strong rejection from a resistance level, which made the candle have a long spike on its top. Nevertheless, it is a bull candle after the breakout, thus it can be said that it is buyers who have upper hand over the sellers on BTCUSD.
Let us have a look at the daily chart first.
The Daily Chart
The daily chart shows that the level of 8319.35 was breached by a daily candle explicitly. In fact, it was the day before yesterday’s daily candle. Then, yesterday the buyers pushed the price towards the North a little further as expected as far as technical analysis is concerned. However, considering the breakout, the buyers should have been more confident. In other words, the price should have gone further up. Nevertheless, the chart suggests that buyers may dominate today as well. The breakout and trend both look very evident. Thus, with BTCUSD, the daily and H4 traders only should look for long opportunities.
Let us have a look at the H4 chart.
The H4 chart
The H4 chart shows that the price has been on a consolidation. The level of 8597.45 is the support and the level of 8919.60 is the level of resistance of the consolidation zone. An inside bar H4 bullish candle has already been produced on the support level. The best way to go long on the pair would be after a breakout at the resistance level of the consolidation zone. There is enough space for the price to go towards the North. Thus, the risk and reward ratio is excellent here.
Key Points of the H4 Chart
If the breakout takes place on the H4 chart, the price is going to head towards the North with a good pace.
Next resistance level would be 9950.50.
The level of support here is 9597.45.