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BTC/USD: USD to gain more strength relative to the BTC
BTC USD price movement

The BTC/USD H4 timeframe chart

The BTC/USD has reached 70 RSI; this is a clear indication that the BTC/USD pair is overbought, and the trend will move in a downward direction. Certainly, the market trend has complied with the market RSI movement, and it is really an opportunity to make fortune with the BTC/USD pair. On a H4 timeframe, the 20-period SMA acts as a support for the BTC/USD trend, and it may likely be used as our TP. The support zone is in the confluence of $22166.90 and $22626.55. It has tested this region two times recently. The 50-period SMA is farther away from the price action, and it also indicates a possible downtrend.

Using the candlestick analysis, the trend has responded accordingly to the candlestick patterns, especially the inverted harmer. If you have a close look at the BTC/USD chart, you will see that the last candle formed was an inverted hammer, and it indicates a possible reversal in the downward direction. Besides, the trend has hit the new resistance zone at $23897.32, which indicates a trend reversal. Coupled with the US dollar index that is above 100, it is crystal clear that the USD will gain more strength relative to the BTC.

Market prediction: All the market indicators and the price action point to a downtrend around the BTC/USD pair. Initiate a sell order and set your TP at $23248.42, or you could set your TP at $22145.80 if you want to play a long game.

Note: The only thing that could nullify the prediction is major news around BTC/USD pair.

BTC/USD technical analysis

The BTC/USD is traded at $21,424.79 at the time of writing this piece. The RSI indicated a possibility of the bitcoin continuing in the downtrend with the new LH (lower high) being $21,412.23 and it has tested this zone multiple times; it will likely be the resistance zone. The RSI is at stake which means that it is close to being overbought. This indicates a likely decline of the BTC/USD in the future.

Graphs showing moving averages of BTC/USD

The H4 timeframe of BTC/USD

Using the H4 timeframe, the Moving Averages responded to the price action. The BTC/USD has hit the resistance zone with the possibility of making a reversal from the LH ( lower-high) at $21412.23. However, the 20-period Moving Average just crossed over the 50-period Moving Average with the possibility of a continuing uptrend, but the price action and the RSI aren’t conforming to this.

The price action and the RSI indicate a possible price movement in the downward direction to retest the support zone at $20,555.85. It is very obvious that there is still a dip in the cryptocurrency market and the chances of the market declining further are still very high.

Prediction: Initiate a sell order and set your TP to $20,555.85 to quickly make a profit.