Let's analyze the D1 BTC/USDT timeframe to come up with a trading plan
✅Technical indicators:
Bollinger Bands (BB):
• Price has bounced down from the upper band of BB and is adjusting.
• The middle band of BB (MB): 89,642.12 USD, acts as support. If the price breaks this level, selling pressure will increase.
RSI (Relative Strength Index):
• RSI(6, 12, 24) fluctuates around 55.87 to 68.07:
• RSI has decreased from the overbought zone (>70), signaling increasing selling pressure.
• If RSI falls below 50, the likelihood of price continuing to adjust is high.
Stochastic RSI:
• Near the oversold zone (17.61), a short-term bounce may occur.
⭕️Relationship between indicators:
• Short-term downtrend (price adjustment) due to selling pressure from the resistance zone.
• Main support: The 89,000 - 90,000 USD zone; if broken, the chance of BTC continuing to drop to 84,000 USD increases.
♻️Trading strategy:
Case 1: BTC holds the support zone (89,000 - 90,000 USD):
• Confirming this support zone may allow for buying with a short-term target of 95,000 - 98,000 USD.
• Stop loss below the 88,500 USD zone.
Case 2: BTC breaks support:
• The downtrend will be stronger, prioritize exiting if you are holding a long position.
• Avoid catching the bottom, wait for new signals from RSI or Stochastic.
Case 3: BTC strongly bounces back:
• If the price exceeds 98,000 USD, the mid-term uptrend will continue, buying orders can be placed when the price retests.
Conclusion:
BTC is currently in a short-term adjustment phase. Observe important support/resistance zones (89,000 - 98,000 USD). Only enter trades when technical signals clearly support the trend.