Hi Traders! Bitcoin forecast update and follow up is here. On October 13th I shared this “Technical Analysis – Bitcoin Forecast” post in my 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!
On the H4 chart, we had a strong resistance zone that had formed and the price which is moving higher has broken above this strong resistance zone and is holding above it. Currently, this strong resistance zone is acting as a strong support zone for us and in addition to this we also have a good uptrend line that has formed and this dynamic support coincides with the strong support zone, which makes this area a key support zone for us. Also, there are no contradictory signs that show the current bullish trend is over yet. So based on all this, my view here is bullish and I expect the price to continue higher further until this key support zone holds.
Bitcoin H4(4 Hours) Chart Current Scenario
Based on the above-mentioned analysis my view was bullish here and I was expecting the price to continue higher further until the strong support zone holds. We then had a pullback but most importantly the strong support zone was holding and there were no contradictory signs opposing this bullish view. In addition to this, we had a bullish hidden divergence that has formed between the first low that has formed on 8th October 2020 and the second low that has formed on 16th October 2020 based on the MACD indicator which we may consider as a fact provided by the market supporting the bullish view. The price then moved higher further as I expected it to and provided a fantastic move to the upside.
As traders we always have two choices, the first one is to fall in love with our analysis and try to convince the market and expect the price to move in the direction as per our wish. The second one is to follow the facts that the market provides us and make the right actions according to that. As you know the first option won’t help us and as you can see in the example above what happened when we followed the facts that the market hinted to us and took the right action according to that.
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