Hi Traders! Bitcoin 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 Traders Academy 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 – Range, Bearish Convergence
On the daily chart the price was moving inside a range which started on 21st February 2021. This range is formed by the highs and lows reaching parallel support and resistance zones. The price which was moving inside this range broke below the bottom of it and is holding below it. We may consider this as evidence of bearish pressure. Also, we have a bearish divergence that has formed between the first high that has formed on 61625 and the second high that has formed on 64756 based on the MACD indicator. The price then moved lower and broke below the last low at 50321 thus forming a classical setup of bearish divergence followed by bearish convergence, we may consider this as evidence of bearish pressure. As per the book scenario after a bearish convergence we may expect corrections and then further continuation lower. Currently it looks like a correction is happening, once this correction completes itself we may then expect the price to continue lower further. We may now move down to lower timeframe and look for evidences supporting this bearish view.
Bitcoin H1(1 Hour) Chart Analysis – Bearish Convergence, Strong Resistance Zone
On the H1 chart we have a bearish divergence that has formed between the first high that has formed at 58260 and the second high that has formed at 58551 based on the MACD indicator. The price then moved lower and broke below the last low at 55988 thus forming a classical setup of bearish divergence followed by bearish convergence, we may consider this as evidence of bearish pressure. As per the book scenario after a bearish convergence we may expect corrections and then further continuation lower. Currently it looks like a correction is happening. Also we have a strong resistance zone that has formed and the price which was moving higher respected this zone and is holding below it. Until this strong resistance zone holds my view remains bearish here and I expect the price to move lower further.
Technical Analysis & Forecast Summary
Bitcoin D1(Daily) Chart Analysis
- Range, Bearish Convergence
Bitcoin H1(1 Hour) Chart Analysis
- Bearish Convergence, Strong Resistance Zone
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 sell setup then you can use any setup and strategy that you have in your arsenal to look for bearish moves and join this sell 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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To your success,
Vladimir Ribakov
Certified Financial Technician
