Hi Traders! Bitcoin technical analysis and forecast is here. As we do in every technical analysis post we are going to perform the multi-time frame analysis on Bitcoin. We do our analysis on the MetaTrader4 platform (MT4). Some very interesting and useful tips and hacks about the MT4 platform could be found here. 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 now from the daily chart here.
Bitcoin D1(Daily) Chart Analysis – Bullish Trend Pattern, Downtrend Line Breakout, RSI Indicator
On the daily chart the price which was moving higher has created a bullish trend pattern in the form of three higher highs, higher lows, we may consider this as evidence of bullish pressure. Generally, after a bullish trend pattern, we may expect corrections and then potential continuation higher. Currently, it looks like the correction that we were looking for has happened in the form of double wave down and then the price which is moving higher has broken above the most recent downtrend line. In addition to this, we have a down trendline breakout based on the RSI indicator as well, we may consider these as other evidences of bullish pressure. We may now move down to lower timeframe and see if we can find evidences supporting this bullish view.
Bitcoin H4(4 Hours) Chart Analysis – Key Support Zone
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.
Technical Analysis & Forecast Summary
Bitcoin D1(Daily) Chart Analysis
- Bullish Trend Pattern, Downtrend Line Breakout, RSI Indicator
Bitcoin H4(4 Hours) Chart Analysis
- Key Support Zone
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