Hi Traders! Bitcoin forecast and technical analysis is here. As we do in every technical analysis post we are going to perform the multi-time frame analysis on Bitcoin. We do our analysis on the MetaTrader4 platform (MT4). Some very interesting and useful tips and hacks about the MT4 platform could be found here. 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 now from the weekly chart here.
Bitcoin W1(Weekly) Chart Analysis – Key Resistance Zone, Potential Bearish Divergence, Stochastic Oscillator, Volumes Indicator
On the weekly chart we have a key resistance zone that has formed based on the 100%(14631.55) fibonacci expansion level of the first wave and the 14,000 psychological level. The price which is moving higher has currently reached this key resistance zone. In addition to this we have a potential bearish divergence that has formed between the first high that has formed at 13810.82 and the second high that has formed at 13834.11 based on the MACD indicator. Looking at the Volumes indicator we could see that the volumes are dropping and also based on the Stochastic Oscillator we could see that the price has reached its extreme. We may consider these as evidences of bearish pressure.
Bitcoin H4(4 Hours) Chart Analysis – Bearish Divergence, Stochastic Oscillator
Looking at the H4 chart we could see that the price has created a bearish divergence between the first high that has formed on 22nd October 2020 and the second current high that has formed on 28th October 2020 based on the MACD indicator, which we may consider as evidence of bearish pressure. Also based on the Stochastic Oscillator we could see that the price has reached its extreme and is moving lower, we may consider this as another evidence of bearish pressure. So based on all this I expect pullbacks to happen now and then the price to continue higher further.
Technical Analysis & Forecast Summary
Bitcoin W1(Weekly) Chart Analysis
- Key Resistance Zone, Potential Bearish Divergence, Stochastic Oscillator, Volumes Indicator
Bitcoin H4(4 Hours) Chart Analysis
- Bearish Divergence, Stochastic Oscillator
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