Hi Traders! Bitcoin forecast follow up and update is here. On May 4th I shared this “Bitcoin Forecast And Technical Analysis” 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 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.
On the H1 chart my view was bearish and I was expecting the price to move lower further until the strong resistance zone holds. The price action followed my analysis exactly as I expected it to here. After the bearish convergence, we had a pullback, and then the price moved lower as I expected it to and delivered a nice move to the downside until it was blocked by a bullish divergence.
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To your success,
Vladimir Ribakov
Certified Financial Technician
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