Trade Idea – Bitcoin Buy Setup After Bearish Trend Line Breakout

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Trade Idea - Bitcoin Buy Setup After Bearish Trend Line Breakout

Hi Traders! Today’s technical analysis post is about the Bitcoin buy setup after bearish trend line breakout. As we do in every technical post we are going to perform the multi-time frame analysis on this cryptocurrency in order to find the possible trading opportunities. 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.

BTCUSD D1(Daily) Chart Analysis – Bearish Trend Line Breakout, Bullish Convergence

On the daily chart we had a good bearish trend line that has formed and the price which was respecting this dynamic resistance so far has currently broken above it and is moving higher, we may consider this as an evidence of bullish pressure. In addition to this we had a bullish divergence that has formed between the first low at 6511.68 and the second low at 6419.82 based on the MACD indicator and then the price moved higher and has currently created higher highs thus forming a classical setup of bullish convergence. Hence as per the book we may now look for pullbacks to happen and then we may start looking for buys with more bullish evidences. Lets now move on to one timeframe lower and check if we have evidences that supports this bullish view.

Trade Idea - Bitcoin Buy Setup After Bearish Trend Line Breakout

 

BTCUSD H4 (4 Hours) Chart Analysis – Bullish Trend Pattern, Fibonacci Retracement, Important Support Zone

On the H4 chart we have a bullish momentum and the price which had created two higher highs, higher lows pattern the price has currently moved higher again creating the third high thus forming a bullish trend pattern. Generally as per the book we may now expect possible pullbacks to happen and then we may start looking for the buys. Currently we have a bearish divergence that has formed between the first high 8393.14 and the second high at 8875.57 based on the MACD indicator. We also have a strong technical support zone based on price action that has formed which coincides with the fibonacci retracement zone at around 7639.90 of the cycle we have. We may now expect possible retrace to happen towards this area and then we may start looking for bullish setups with bullish evidences (evidences could be in the form of candle stick patterns, false breaks, trend line breakout etc… supporting the bullish view) in order to join the bulls.

Trade Idea - Bitcoin Buy Setup After Bearish Trend Line Breakout

Technical Analysis & Forecast Summary

Lets recap and summarize the analysis we had so far:

BTCUSD D1(Daily) Chart Analysis:

  • Downtrend Line Breakout, Bullish Convergence

BTCUSD H4 (4 Hours) Chart Analysis:

  • Bullish Trend Pattern

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Trade Idea - Bitcoin Buy Setup After Bearish Trend Line Breakout

 

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Yordan Kuzmanov
Chief Trader at the Traders Academy Club

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MARCO SIMIONI
8 months ago

Other Cryptos are moving up too, and I remember McAfee prediction for 2020, maybe not to 1 million usd, but I think 2020 will be strongly bullish for cryptos.
Marco Simioni
https://nightlypatterns.blog

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