Hi all. The first month for 2020 already passed and it was hell of a good month for BTC. Hope that`s just a preview for the whole year. Last time i`ve presented to you a really long term analysis so let`s get back to shorter ones.
Beside of all financial markets, today was a really hot day for the winter season (around 20 degrees) and that`s why i`ve been on a pleasant walk with my wife and friends. That`s why i`m kind of tired now and i`ll be really short but punctual in my analysis.
The graph is not really changed except the new support and resistance levels and 2 newly added indicators.
Two support levels:
1. $8500 - previous resistance and 50% fibo level
2. $7800 - previous resistance level
Resistance level: $9800 - previous resistance and 38.2% fibo level
What about the newly added indicators? Here they are:
1. Pivot point. A pivot point is a technical analysis indicator, or calculations, used to determine the overall trend of the market over different time frames. The pivot point itself is simply the average of the high, low and closing prices from the previous trading day. On the subsequent day, trading above the pivot point is thought to indicate ongoing bullish sentiment, while trading below the pivot point indicates bearish sentiment.
The pivot point is the basis for the indicator, but it also includes other support and resistance levels that are projected based on the pivot point calculation. All these levels help traders see where the price could experience support or resistance. Similarly, if the price moves through these levels it lets the trader know the price is trending in that direction.
Last weeks the price was consistently above PP levels. As you`ll see we`ll close this week above it again (Weekly pivot point (week 5 `20)). I`m calculating the next week PP level on a $9440 closing price. It can change a bit cuz this week candle is now yet closed but if the closing price is around $9440 it will be similar.
2. Parabolic SAR. I`ll not go in deep into explanation what is PSAR but if you want to learn more about it here`s a good article about it - https://www.forex.academy/profitable-trading-computerized-studies-iii-psar/
. The most important here is that PSAR is turned back to bullish after the price top back in July last year. If that`s not a strong bullish signal I don`t know what can be.
That`s for now from me guys. Wishing you a wonderful and prosper week and month.