The 60-minute shows the BTCUSD retracement to ATR with the Stochastics oversold. Currently, with approximately 20 minutes remaining, the current candlestick is bullish indicating a potential long entry.
If an entry is executed, there are four overhead resistance areas to watch out for:
Any of these areas could provide resistance. Then again price could break through and then retest these areas to ensure support has formed.
BTCUSD Retracement to ATR with Stochastics Oversold
A retracement to ATR is typically a low risk entry point as price is at a level of support (or resistance if the ATR is overhead). The area is even stronger if the oscillator is indicator that the market is overextended. A bullish candlestick (when the ATR is under price) is an indication that buyers are interested in taking price up.
In this example, the conditions are met if the current candlestick remains bullish for the next 20 minutes. However, traders still need to monitor the trade to ensure that price is able to breakthrough the overhead resistance areas.