Technical Analysis – Bitcoin Forecast

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Technical Analysis - Bitcoin Forecast

Hi Traders! Bitcoin 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.

You can watch the video explanation of this idea here

Bitcoin D1(Daily) Chart Analysis – Key Support Zone, Bullish Divergence

On the daily chart, the price which is moving lower has reached a strong support zone and is holding in this zone. In addition to this, we have the 30,000 psychological level coinciding in the same zone which makes this area a key support zone for us. Also, we have a bullish divergence that has formed between the first low that has formed on 23rd May 2021 and the second low that has formed on 21st July 2021 based on the MACD indicator which we may consider as evidence of bullish pressure. So everything looks good here for the bulls and we may now move down to lower timeframe and look for evidences supporting this bullish view.
Technical Analysis - Bitcoin Forecast

 

Bitcoin H1(1 Hour) Chart Analysis – Heikin Ashi Candles, Strong Support Zone, Stochastic Oscillator

On the H1 chart, after the strong bullish move currently it looks like a flat correction is happening. In addition to this, 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 had a strong resistance zone and the price which is moving higher has broken above this zone and is holding above it. And, also based on the Stochastic Oscillator we could see that the price has reached its extreme. We may consider these as evidences of bullish pressure and also currently there are no signs opposing this bullish view. So based on all this my view here is bullish and I expect the price to move higher further after this correction.
Technical Analysis - Bitcoin Forecast

Technical Analysis & Forecast Summary

Bitcoin D1(Daily) Chart Analysis 

  • Key Support Zone, Bullish Divergence

Bitcoin H1(1 Hour) Chart Analysis 

  • Heikin Ashi Candles, Strong Support Zone, Stochastic Oscillator

Trading Tips

It is always recommended to look for confirmations before you jump into any trade. If you are not sure about how to trade this 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.

You will also find a pretty extensive database of educational materials here in the blog – just use the search or check out the Forex Education section above.

Not sure how to enter a trade? Spot reversals (bounces)? Not sure how to spot breakouts?

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If you have any further questions, don’t hesitate to drop a comment below!

 

Happy Trading!

Yordan Kuzmanov
Chief Trader at the Traders Academy Club

 

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