BitCoin in Tradingview- Multiple time frame Analysis

Hello Traders, In this article, we will analyse this generation’s most innovative investment instrument over multiple timeframes in Tradingview. Let me first introduce you to Bitcoin, a distinctive form of money that can be used for online transactions. the manner in which money is spent to make purchases in the real world The best thing about Bitcoin is that it is decentralized, meaning no one can control it. As a result, it is accessible to everyone and not in anyone’s or any organization’s control. Thus, the next time someone mentions bitcoin, you will understand what they are talking about. This article will analyze the BTCUSDT in Tradingview over the course of four time frames: weekly, daily, four hours, and finally one hour. It will help us understand the long-term view and the short-term view.

BTCUSDT on Weekly Time Frame

With noticeably higher volumes, the BTCUSDT had demonstrated a strong breakout from its consolidation of eight weeks. The coin consolidated in the range of 200 points (18300-16200). Additionally, on a closing basis, it was able to break through and hold above the 20 SMA. This demonstrates unequivocally that bulls are picking up steam in this pair. Additionally, BTCUSDT was able to close above the high of a massive bearish candle that was formed on the week that ended on November 7 as a result of a fraud involving the FTX exchange in which customers lost billions of dollars. If we look at the price chart, the BTCUSDT made a low of USD 17622 on the week closed on 13 June 2022, then a lower low was formed on 07th November 2022. Nevertheless, despite a lower low formed on the price chart, it made a higher high on the RSI. The aforementioned circumstances indicate that bulls are gaining momentum. Although they do not yet hold a dominant position in the market, they have managed to establish some ground. The bias will remain negative as long as BTCUSDT trades below its 200 SMA, but the coin is currently trying to move above the 200 SMA. Therefore, traders are advised to only add to their coin holdings in accordance with their risk appetite and not to aggressively build long positions.

BTCUSDT on Daily Time Frame

As of February 9, 2023, BTCUSDT is consolidating, after a strong rally of 6,000 points (USD 18000–24200). This is a natural occurrence, and one of its main characteristics is that after significant moves, markets consolidate sideways. This type of consolidation helps market participants re-evaluate and adjust their current positions. This type of consolidation also provides a good opportunity for traders who missed the first rally. 

At the same time, the RSI shows that the market was overvalued and that a correction was necessary to strengthen the market and start a new rally. Therefore, any decline until its 200 SMA (USD 19500) would be a chance to add more coins. In the event that BTCUSDT posts a solid close below the 200SMA, it may once again touch the USD16000 and lower lows.

BTCUSDT on 4 Hour Time Frame

On 4-hour time frame, we can clearly see that BTCUSDT using this consolidation phase to cool down. As, RSI slowly entering into oversold zone after rebounding from overbought zone. Furthermore, the 200 SMA’s upward slope indicates that the short-term trend is positive, and BTCUSDT can use the 200 SMA as support to launch a new rally.

Okay, so up until this point, we had only examined one component of this pair—BitCoin. Let’s now take a look at other factors that may have an impact on the price of this pair even though Bitcoin prices are unchanged.

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US dollar to USDT pegging

The value of USDT will always be derived from the US dollar because it is a stablecoin. Simply put, 1 USDT will always be equivalent to 1 USD, ceteris paribus. But occasionally, the USDT loses its peg to the US dollar. like it happened in the FTX exchange scam. 

The short-term BTCUSDT prices may also be impacted by such circumstances. But over the long term, USDT always adheres to the peg.

BUSD to USDT Pegging

Another well-known stablecoin is BUSD, which is issued by Paxos and one of the biggest cryptocurrency exchanges, Binance. A 1:1 reserve of US dollars held by Binance is used to back BUSD. 

Before making an investment in the BTCUSDT pair, it is crucial to pay close attention to the BUSD to USDT pegging. If the pegging value is greater than 1, then traders favor the BUSD over the USDT, and vice versa.

Traders will then start buying the BUSD pair and selling the BTCUSDT pair.

Disclaimer :

CryptoPunditz.com is not a registered investment, legal, or tax advisor or a broker/dealer. All investment/financial opinions expressed by CryptoPunditz.com are from the personal research and experience of the owner of the site and are intended as educational material. Although best efforts are made to ensure that all information is accurate and up to date, occasionally unintended errors and misprints may occur.