Hi Traders! Bitcoin short term forecast follow up and update is here. On April 12th I shared this “Bitcoin Short Term 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 HomeTrader Club. Spoiler alert – free memberships are available!
My Idea
On the H1 chart, we have a bullish rally and currently, it looks like this bullish rally is about to continue. 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. In addition to this, 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, currently, there are no signs opposing this bullish view. Also, we had a strong resistance zone and the price which was moving higher has broken above this zone and is holding above it. After the breakout, this strong resistance zone is acting as strong support zone for us. So based on all this, until this strong support zone shown in the image below(marked in green) holds my short-term view remains bullish here and I expect the price to move higher further after pullbacks.
On the H1 chart, based on the above-mentioned analysis my short-term view was bullish here and I was expecting the price to move higher further after pullbacks. After the higher highs, the pullback that I was looking for happened and in addition to this, the price also created a bullish hidden divergence between the first low that has formed at 28124.02 and the second low that has formed at 29813.16 based on the histogram of MACD indicator. Followed by a continuing bullish divergence between the first low that has formed at 29813.16 and the second low that has formed at 29644.35 based on the histogram of the MACD indicator, which we may consider as facts provided by the market supporting the bullish view. The price then moved higher further as I expected it to and delivered an excellent move to the upside until it was blocked by a bearish divergence.
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 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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Happy Trading!
Arvinth Akash
Home Trader Club Team.
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