BTC ANALYSIS 11/03
- After touching the 71k resistance zone, BTC faced short-term profit-taking selling pressure, causing a price correction as I predicted earlier. Please refer to today's analysis!
* On the D1 timeframe: Yesterday's D1 candle was a bullish candle with a fairly long upper wick and closed above half the candle's range. This candle appeared right at the strong resistance zone of 71-72k, indicating that profit-taking pressure from sellers had begun to appear in this area. However, the fact that the price still closed quite high within the candle body suggests that the selling pressure was not strong enough to reverse the short-term trend; buyers are still maintaining the upper hand.
- In addition, after the previous strong rally, the appearance of this type of candle at resistance usually signifies a supply test rather than an immediate reversal signal. Therefore, it is highly likely that BTC will consolidate or undergo a slight correction to absorb selling pressure around the 69kx region before continuing to rise to retest the 71-72k resistance zone once again.
* On the H4 timeframe: After rising to the strong resistance zone around 71kx, BTC encountered significant selling pressure and a correction occurred. This is a fairly normal reaction when the price touches a strong supply zone above.
- Currently, the short-term structure is still a correction within an uptrend on the H4 timeframe, so it is highly likely that BTC will continue to undergo a technical correction to absorb selling pressure. A noteworthy area below is the H4 timeframe EMA20 around 69k, which also coincides with the 0.5 Fibonacci level of the most recent uptrend, forming a fairly good confluence support zone.
- If BTC corrects to this area and a positive price reaction occurs, there's a high probability the price will bounce back and continue testing the 71-72k resistance zone in the short term.
Therefore, the sensible strategy right now is to prioritize waiting for a pullback to the 69k region to find a long opportunity, instead of FOMO when the price is near the resistance zone above.
