Yesterday I wrote about Bitcoin and possible market movements based on the daily timeframe . In order to see the whole picture, please, read that post. You can find it in the related ideas.
This time, let’s look at the 4H chart, where we have a trend reversal signal.
The price, RSI , and MACD histogram formed a bullish divergence . It tells us about a possible trend reversal and a further upward movement. For this, the price will have to break the local downtrend line. It will give us an additional bullish signal.
RSI moved above from the oversold zone. MACD lines support the further upward movement. ADX line of DMI falls, and it tells that sellers are not so strong now.
It is possible to open long trades based on the trend reversal signal. But the market still has the potential to reach 8000.00 support zone .
Plan your trades, taking into consideration all information from the market and indicators.
This post does not provide financial advice. It is for educational purposes only! You can use the information from the post to make your own trading plan for the market. But you must do your own research and use it as the priority. Trading is risky, and it is not suitable for everyone. Only you can be responsible for your trading.
Comment: The market gave us a double bullish divergence. It is a stronger signal than the trend reversal signal I wrote about in the post. The price broke the local downtrend line and it gave us an additional bullish signals which confirms the further upward movement. The 1st target for buyers is 9000.00 which can become a resistance again. The reversal from this zone will push the price to 8000.00 support. The breakout above 9000.00 will confirm the strength of buyers and the upward movement to 9600.00 as a new target.