Hi Traders! Bitcoin short term 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.
On the daily chart, we had a strong bearish rally and currently it looks this bearish rally has completed itself and a correction is happening in the form of double wave to the upside. While measuring the first wave of this correction using the Fibonacci expansion tool we could see that the price which is moving higher has broken above the 61.8%(42247.45) Fibonacci expansion level and is holding above it. Price still has room higher towards the 100%(47105.47) Fibonacci expansion level. In addition to this, the 38.2%(46649.36) – 50%(50883.96) Fibonacci retracement levels of the bearish rally coincides in the same area which makes this area a key resistance zone for us. Also, currently there are no signs opposing this short term bullish view. So basically, I expect the price to move higher further towards the key resistance zone. Everything looks good here for the bulls and we may now move down to lower timeframe and look for evidences supporting this short term bullish view.
On the H4 chart, 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 could see that the price which was moving higher has created higher highs based on the MACD indicator which is a sign of gaining momentum towards the bullish side. In addition to this, the ADX indicator gave a bullish signal here at the cross of +DI (green line) versus -DI (red line) and the main signal line (silver line) reads value over 25, we may consider this as another evidence of bullish pressure. Also, we had two strong resistance zones that has formed and the price which was moving higher has broken above these zones and is holding above them. After the breakout these strong resistance zones are acting as two strong support zones for us. Until both these strong support zones hold my short term view remains bullish here and I expect the price to move higher further.
Bitcoin D1(Daily) Chart Analysis
Bitcoin H4(4 Hours) Chart Analysis
It is always recommended to look for confirmations before you jump into any trade. If you are not sure about how to trade this short term buy setup then you can use any setup and strategy that you have in your arsenal to look for bullish moves and join this buy trade.
Also, don’t forget to protect your buy trade using a stop loss and make sure to set a target and keep a proper risk/reward ratio.
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Happy Trading!
Arvinth Akash
Traders Academy Club Team
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