Hi Traders! Bitcoin short term forecast and technical analysis is here. The way I would like to analyze the chart for setups is based on multi-timeframe confirmations because in my POV if we get more evidences on different timeframes for the same direction then it makes the setup much more reliable. If you would like to learn more about the way we trade and the technical analysis we use then check out the HomeTrader Club Spoiler alert – free memberships are available! Let’s start our analysis from the highest timeframe which will be the daily chart here.
Bitcoin D1(Daily) Chart Analysis – Strong Support Zone, Bullish Convergence, Downtrend Line Breakout, ADX Indicator
On the daily chart, the price reached a strong support zone, respected it and bounced higher from this zone. Also, it has created a bullish divergence that has formed between the first low formed at 25831.55 and the second low formed at 24797.69 based on the MACD indicator. The price then moved higher and broke above the last high at 28442.67 creating higher highs, thus forming a classical setup of bullish divergence followed by bullish convergence. We may consider these as evidences of bullish pressure. Also, the price which is moving higher has broken above the most recent downtrend line which we may consider as another evidence of bullish pressure. In addition to this, the ADX indicator gave a bullish signal here at the cross of +DI (green line) versus -DI (red line) and the main signal line (silver line) reads value over 25, we may consider this as yet another evidence of bullish pressure. So everything looks good here for the bulls and we may now move down to lower timeframe and see if we can find evidence supporting this bullish view.
Bitcoin H4(4 Hours) Chart Analysis – Heikin Ashi Candles, ADX Indicator, Two Strong Support Zones
On the H4 chart, based on the Heikin Ashi candles we can see that currently, we have strong bullish bodies in upward moving market conditions so it basically reflects a bullish environment. In addition to this, the ADX indicator gave a bullish signal here as well at the cross of +DI (green line) versus -DI (red line) and the main signal line (silver line) reads value over 25, we may consider this as yet another evidence of bullish pressure. Also, currently, there are no signs opposing this bullish view. In addition to this, we had two strong resistance zones that has formed and the price which was moving higher has broken above these zones and is holding above them. After the breakout these strong resistance zones are acting as two strong support zones for us. Until both these strong support zones shown in the image below (marked in green) holds my short term view remains bullish here and I expect the price to move higher further after pullbacks.
Technical Analysis & Forecast Summary
Bitcoin D1(Daily) Chart Analysis
- Strong Support Zone, Bullish Convergence, Downtrend Line Breakout, ADX Indicator
Bitcoin H4(4 Hours) Chart Analysis
- Heikin Ashi Candles, ADX Indicator, Two Strong Support Zones
Trading Tips
It is always recommended to look for confirmations before you jump into any trade. If you are not sure about how to trade this short-term buy setup then you can use any setup and strategy that you have in your arsenal to look for bullish moves and join this buy trade.
Also, don’t forget to protect your sell trade using a stop loss and make sure to set a target and keep a proper risk/reward ratio.
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Happy Trading!
Arvinth Akash
Home Trader Club Team
