1. Candlestick pattern
The BTC/USDT price chart on the daily timeframe shows:
• Current candlestick pattern: Pair of bearish candles followed by small bullish candles, forming an Inside Bar. This is a sign of indecision and can signal a trend reversal or continuation.
• Pin Bar Candlestick: If the Pin Bar candlestick pattern appears after a sharp decline, it can signal a bullish reversal.
2. Technical indicators
• Bollinger Bands (BOLL): The price is currently below the middle band of the Bollinger Bands, which shows that downward pressure on prices still exists.
• Moving average (MA): Price is trading below short-term MA lines (5, 10, 20 days), showing that the downtrend is still dominant.
• Relative Strength Index (RSI): RSI(6) is 43.34, RSI(12) is 38.78 and RSI(24) is 40.28. The RSI indicators are all below 50, showing that the market is currently in the oversold zone or the selling pressure is still strong.
• MACD: The MACD indicator shows a negative signal, with the MACD Histogram below the zero line, showing a bearish trend.
• Trading volume (Volume): Trading volume has increased dramatically in recent sessions, indicating large market participation, which can lead to strong fluctuations.
summary
• Short-term trend: Current charts and technical indicators show that BTC/USDT is still in a downtrend. However, the formation of an Inside Bar pattern and increased trading volume could signal a short-term reversal.
• Trading strategy: If the Inside Bar pattern is confirmed, you can consider opening a buy order when the price breaks the resistance level of the mother candle. Conversely, if the price breaks the support level of the mother candle, you can open a sell order.
Suggest
• Stop Loss: Place a stop loss order below the recent bottom (about 53,485.93 USD).
• Take Profit: Set profit target at the next resistance levels (about 60,000 USD).
Always monitor other market factors and adjust your trading strategy accordingly.
