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 H4 chart here.
Bitcoin H4(4 Hours) Chart Analysis – Key Support Zone, Bullish Divergence, RSI Indicator
On the H4 chart, the price which was moving lower has reached a strong support zone, respected it and is currently bouncing higher from this zone. In addition to this, we have the 45,000 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 at 45910 and the second low that has formed at 45517 based on the MACD indicator which we may consider as evidence of bullish pressure. Also, we have this bullish divergence on the RSI indicator as well, which we may consider as yet another 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.
Bitcoin H1(1 Hour) Chart Analysis – Bullish Divergence, Parabolic Sar
Looking at the H1 chart, we could see that the price which was moving lower has created a bullish divergence that has formed between the first low that has formed at 45641 and the second low that has formed at 45517 based on the MACD indicator which we may consider as evidence of bullish pressure. Also, based on the Parabolic Sar we could see that the dots are below the price which we may consider as yet another evidence of bullish pressure. Until the H4 key support zone holds my short term view remains bullish here. If the price moves higher and breaks above the last high at 47500 with momentum creating a bullish convergence based on the MACD indicator, we may then consider it as a validation for the bullish view. We may then expect short term bullish moves to happen here after possible pullbacks.
Technical Analysis & Forecast Summary
Bitcoin H4(4 Hours) Chart Analysis
- Key Support Zone, Bullish Divergence, RSI Indicator
Bitcoin H1(1 Hour) Chart Analysis
- Bullish Divergence, Parabolic Sar
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 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
