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 HomeTrader 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 bullish rally, and the price which was moving higher reached a strong resistance zone and respected it. Currently, it looks like this bullish rally has completed itself and a correction is happening. Generally, after a bullish rally, we may expect corrections towards the 38.2% – 50% Fibonacci retracement zones and then potential continuation higher. We also had a bearish divergence that formed between the first high formed on 2nd February 2023 and the second high that formed on 21st February 2023 based on the MACD indicator which we may consider as evidence of bearish pressure. Currently, it looks like the correction that we are looking for is happening. We could see that the price still has room lower towards the key support zone formed by the 38.2%(21485.13) – 50%(20336.60) Fibonacci retracement zones of this bullish rally. We may now move down to a lower timeframe and see if we can find evidence supporting this short-term bearish view.
On the H1 chart, the price which is moving lower has created a bearish trend pattern in the form of three lower highs, and lower lows which we may consider as evidence of bearish pressure. Generally, after a bearish trend pattern, we may expect corrections and then a further continuation lower. Currently, it looks like a correction is happening. Also, we had two strong support zones that have formed, the price moved lower broke below these zones and is holding below them, we may consider this as yet another evidence of bearish pressure. Currently, these strong support zones are acting as strong resistance zones for us. Until these two strong resistance zones (marked in red) shown in the image below hold my short-term view remains bearish here and I expect the price to move lower further.
Bitcoin D1(Daily) Chart Analysis
Bitcoin H1(1 Hour) 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 sell setup then you can use any setup and strategy that you have in your arsenal to look for bearish moves and join this sell trade.
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Arvinth Akash
Home Trader Club Team.
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