Hello everyone, I invite you to review the current situation on BTC in the USDT pair, taking into account the four-hour interval. First, we will mark the local uptrend channel with the blue lines, and then the local downtrend line inside the current channel with the yellow line.
When we turn on EMA Cross 10 and 30, we can see that the red EMA Cross 10 line is approaching the intersection of the green EMA Cross 30 line, which could confirm the return to the downtrend.
Now we can move on to marking support areas in case the correction deepens. For this purpose, we will use the trend based fib extension tool, and here, first of all, it is worth marking the support zone from $34,383 to $34,114, but when we fall below this zone, we may see a decline to the vicinity of the second zone, which protects us from a larger correction from $33,687 to $33,370.
Looking the other way, we can determine resistance areas in a similar way. First, we will mark the resistance zone from $34,790 to $35,196, when it is overcome, the price will move towards the second strong resistance zone from $35,858 to $36,327, which has effectively rejected the price so far.
Please pay attention to the CHOP index which indicates that there is still energy to make a move, the RSI indicator shows a movement around the middle of the range with room for the price to recover more, while the STOCH indicator is approaching the lower limit, which may result in an upward movement, but earlier, there is room for another decline.