Bitcoin Technical Analysis: Graph and forecast

bitcoin technical analysis

30 de November de 2022

30 de November de 2022

Undoubtedly, Bitcoin is and will be the best cryptocurrency on the market. Its scarcity, security, decentralization, transparency, and global acceptance as a haven of value are the characteristics that allow it to be a fundamental pillar in the crypto world today. To learn more about bitcoin, let’s take a closer look at the bitcoin technical analysis chart. Do you sign up for the journey?

Bitcoin Chart analysis

Although the short-term trend remains down, this chart follows an uptrend. Right now, the price of bitcoin is around $20,000. The price has fallen since the beginning of the year (January 2022) by more than 70%. What do you think is happening?

 

 

BTCUSD-Mensual

 

Looking at the bitcoin weekly chart, we can see that the price is still in an accumulation zone.

 

BTCUSD-Semanal

Bitcoin technical analysis

Knowing how to read charts and their context well is essential, such as the chart’s trend, entry and exit patterns, support and resistance, etc. 

Therefore, we will analyze all the crypto technical indicators that the bitcoin chart draws today.

1- Support and resistance

The difference between support and resistance is minimal: both are the same. The only change is that the supports are below the price, and the resistances are above it. Where are the levels located on this bitcoin chart?

 

BTCUSD-Soportess

 

As you can see, bitcoin was very bearish, and the 20,000 zone helped it slow down. We have placed several supports and resistances in the areas where the price has bounced: 12,340, 19,900, 24,350, 30,650, 40,000, and 49,800. If the price were to drop to the $19,000 area, it would be an excellent time to buy, as long as it breaks the $24,000 support.

You would have to see a breakout to get out of this buildup, which has yet to happen.

2- Where to enter and where to exit

It takes work to place correctly your entry price, exit price, or even the stop loss. If you intend to exit the trade manually, you can start forgetting about that idea. It won’t benefit you at all. Knowing when to enter a trade is essential, but it is much more important to know how to exit correctly. So here we go. Let’s point out our key points.

 

BTCUSD-Diario

 

You should ask yourself what type of investor you are. If you want to buy for the long term (holder), you will wait for the support zones to accumulate positions. You wouldn’t care so much if the price fluctuates.

If you like to trade (swing trader), you must be clear about where to place your entry, stop loss, and risk.

In this case, you have two options. One is riskier than the other, but it all depends on your desire.

  1. Wait for bitcoin to reach the 24,000 zone and place your stop loss, entry, and your objective according to what the price draws.
  2. You see that bitcoin has been giving little bumps. Another possibility would be to wait for it to hit the 20,000 zone and then roll over again.

3- Weekly Average

Today, we can (and should) adjust our technical indicators so that they help us as much as possible. The weekly moving average, even if it is not configured, will not lead to major disasters. In any case, we have configured it to make a big difference in precision and usability. The blue line indicates bullish moments, while the red draws bearish ones. Let’s see what happens in this case.

 

BTCUSD-media.Semanal

 

In the short term, the trend is bearish; furthermore, the lateral average only confirms what we already suspected: we are in a lateral phase.

4- Divergences

Let’s start by spotting those contradictions between price movement and a technical indicator on the bitcoin chart. When a divergence occurs, something is incorrect because the price, and something deducted from the price, do not match. If you want to know how to read an indicator when looking for divergences, click here.

MACD

There are only a few times when significant MACD appears on the weekly charts. However, you have to be careful when they occur because important changes are coming. Let’s analyze the bitcoin chart. At first glance, what do you detect? Tell me. 😉

 

BTCUSD-MACD

 

On the bitcoin weekly chart there IS a bullish divergence on the MACD. The price keeps going up.

The bars are above zero and are colored green. What does this mean? It means that the strong hands, the bullish indicators, begin to rule.

RSI

The RSI moves between 0 to 100 and indicates if the price is high or low. Two things can happen:

  • The price is very high, and an overbought occurs (levels above 70).
  • The price falls below 30 (oversold or very low).

 

BTCUSD-RSI

 

The RSI on this chart shows that the price is low, near oversold levels, and it has a bullish divergence while the price continues to go down.

Triangles 

In trading, triangles are a fundamental part of technical analysis. There are different types of triangles. We have the ascending triangle, the descending triangle, and the symmetrical one. Which one appears on the bitcoin chart?

 

BTCUSD-Semanal. triángulos

 

The bitcoin price comes from making a symmetrical triangle a couple of weeks ago.  However, we have yet to see the explosion we expected. What do you think it is due to?

Force Index

The Force Index can spot divergences and check the trend that the chart is following. In this case, we see that there is a divergence.

Therefore, it supports our hypothesis. Do you agree with us?

 

BTCUSD-Force

5- Volatility

Volatility is usually a sign that the price is accelerating in one direction. To know the current bitcoin volatility, we are going to look at the Japanese candlesticks. Remember, the interpretation of Japanese candlesticks in trading is a matter of common sense.

 

BTCUSD-Volatilidad

 

Institutional forces are starting to buy, but remember that this does not mean you have to buy too. As you might know, they make frequent purchases with various intentions, enduring falls without caring much.

Bitcoin Forecast

If you have come this far, you already know what bitcoin is about, but you want to know what will happen to it. We are going to tell you what can happen from now on. However, we do not promise that it will happen. We deduce this through the different patterns, but it is not 100% accurate.

 

BTCUSD-Mensual

The bitcoin monthly chart is bullish but has a minor correction to the downside since it comes from a double top, although it is still bullish in the background. Would you buy it now? What would you do?

Trading Bitcoin

As you already know, bitcoin trading is very delicate. Buying and selling, taking advantage of price changes, is not a game.

You must train yourself to do it effectively and profitably. Everything else will only lead to wasting time and money.

Do you want that? You have to enjoy every day as if it were your last, don’t you think?

Do not leave for tomorrow what you can do today.

Therefore, contact the Professional School of Traders if you want to learn how to do it correctly. They can help you to learn everything that you need.😎

And, of course, remember to keep watching the bitcoin chart with us. However, do not buy because the price reaches support; always wait for confirmation of the stop. The more you practice, the better you’ll get.

If you have doubts or questions, join our telegram channel!

Eva Robledo - Material Bitcoin

Eva Robledo - Material Bitcoin

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