In our previous bitcoin price forecast analysis, it was expected the price could fall and touch to its minimum support level 6700 $.
This is what happened and price fall to our expected area.
Those who have not read my previous analysis can search for the group to get the idea why I was not in favor of buying bitcoin.
Today I am sharing the reasons and my plan, how I will enter in the market to ride the expected bullish rally.
Bitcoin was moving in a falling wedge pattern and this pattern expected broken area was around 5100$ area. And I believe we should watch the market to spot the entry point. But before entering the market we need to see the break confirmation.
Bitcoin may start making bottom from the current level and it may move in a range and we may see a couple of dojis in next few hours. These dojis and reversal patterns will confirm us our expected bullish move.
How to spot the break and enter the expected bullish rally?
1. Break Confirmation: Wait for the break of resistance, don’t enter the market until you see the proper break and close above the resistance green line shown in the chart below.( We will consider break after the closing of 4-hour candlestick )
2. oversold condition: The market is currently in an oversold condition and this will be the edge for new buyers to jump in, The psychological area to buy the bitcoin is the bottom and extreme support line of falling wedge pattern.
3. The bitcoin fall from 21000$ level and it is the rule in any market that price always creates a correction.As per the technical rule, the correction is starting soon and we have to spot the correction point to jump in. I will try to catch the correction point when I will see the reversal candle pattern and I will definitely share with you in the group if the price starts creating correction or reversal candle pattern in next days.
The break and reversal patterns couldn’t lead bitcoin towards the extreme level again so please don’t expect the bitcoin for the new peak again until price will break the major resistance points. But the expected correction may start from 5100$ towards minimum 9000$ as per the technical point of view.
Please have a look at bitcoin chart below, I have created the possible movement diagram with entering and target levels.
Bitcoin Price Forecast Analysis 4-Hour Chart
Current Market Price: 6700
Next Support 5100 ( Break out expected Zone )
Resistance 1 : 7900-8100
Expected Target Area after the break is minimum 9000$
Wish you good luck and happy trading
Join Our Telegram Channel For More Updates
Note: Never risk more than 2% of your account capital in single trade.Always trade with the proper risk management plan.
Feel free to comment below if you have any concern regarding charts and analysis.Your feedback is always welcome and helps us to improve.
Wish you good luck and happy trading with Gold Technical Analysis
For Gold Price Predictions Please Click here
Mati Ur Rehman
Gold Analyst @ Dailygoldanalysis.com