Hi Traders! Bitcoin forecast follow up and update is here. On July 22nd I shared this “Technical Analysis – Bitcoin Forecast” post in our blog. In this post, let’s do a recap of this setup and see how it has developed now. 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!
My Idea
On the H1 chart, after the strong bullish move currently it looks like a flat correction is happening. In addition to this, 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. Also, we had a strong resistance zone and the price which is moving higher has broken above this zone and is holding above it. And, also based on the Stochastic Oscillator we could see that the price has reached its extreme. We may consider these as evidences of bullish pressure and also currently there are no signs opposing this bullish view. So based on all this my view here is bullish and I expect the price to move higher further after this correction.
Bitcoin H1(1 Hour) Chart Current Scenario
On the H1 chart, the price action followed my analysis exactly as I expected it to. After the breakout of the strong resistance zone, this resistance zone started acting as a strong support zone for us. We had a flat correction in the form of a consolidation and the price was holding above the strong support zone. The price then moved higher further as per the plan and provided a fantastic move to the upside.
On the M15 chart, the market provided us with various facts supporting the bullish view. The H1 chart correction happened in the form of a triangle pattern on the M15 chart and the price which was moving inside this triangle pattern moved higher and broke above the top of it. The price then moved higher further and broke above the last high at 32280.45 thus creating higher highs based on the MACD indicator. We may consider these as facts provided by the market supporting the bullish view and also there were no signs opposing this bullish view. Then as you can see in the image below how the price moved higher further and provided a fantastic move to the upside.
So, traders, this is why I wanted to show this example to help you understand how important it is to follow the facts. The facts were supporting the bullish view here and there were no signs against it. When the facts do happen as we expected you can see how the price perfectly moved as per the plan. Because these are the kind of hints the market provides us at majority of the times and it’s our obligation as traders to be able to listen to these things that the market tells us and we should try to make the right actions accordingly.
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Yordan Kuzmanov
Chief Trader at the Traders Academy Club
