Bitcoin Technical Analysis for April 2022 – ForexLive

Subscribe to our Daily Wrap
Join Forexlive News Updates
Join Forexlive FX & Crypto Chat
Follow us on Twitter
Follow Us on Facebook uses elements from technical analysis , including key price levels, price trend, candlesticks patterns, moving averages, and volume profile on charts in order to analyze bitcoin and find trading opportunities.
Current Bitcoin Price is 47953 USD
As of 1332,GMT, Tuesday, 29 March 2022
Round numbers act as ‘magnets’ that, often, pull assets to them, especially when they are close. At Bitcoin’s current price being less than 5% below the round 50k mark, that is a magnet supporting many traders and media publishers thinking and discussing the possibility of Bitcoin reaching $50,000, as marked below by the horizontal purple line.
Note also that the BTCUSD key price level of 50k is the middle of the range of the weekly chart, whereby its high is the all time high (ATH) of 69k reached in Nov 2021 and the lowest open of any weekly candle since.
A trend is the price movement of a market or an asset in its general direction. Trendlines and/ channels that emphasize when the price is moving up, down, or sideways are used in technical analysis to identify trends.
Bitcoin continues to be trending up, on the daily timeframe, since 24 January 2022. However, traders should watch how Bitcoin price reacts if and when it reaches the upper band of the illustrated channel, since some traders and trading algorithms who have been in Long positions, may close or reduce their positions (thus selling, and increasing downwards pressure on the bitcoin price).
A candlestick pattern is a graphical representation of price movement on a candlestick chart that many traders see as anticipating market action, based on historic patterns and price reactions.
Currently, on the monthly chart, Bitcoin is demonstrating a ‘bullish harami’, which is a candlestick chart indication that may be used to detect bear trend reversals, meaning trend transitions from a downtrend to an uptrend.
The goal of a simple moving average (SMA) is to calculate an average of the market’s price over recent periods in order to discern the market’s trend. The exponential moving average (EMA) is intended to give greater weight to current and most recent price data, which is seen to be more meaningful than older data. As a result, the EMA “reacts faster” to price movements.
Currently, Bitcoin price on the daily chart is above the 9 EMA, which is above the 20 EMA, so the bitcoin price daily trend is still quite bullish, according to these popular moving averages.
Volume profile, sometimes referred to as market profile, is an advanced charting analysis that shows trade activity over a set time period and at certain price levels.
The VAH is the ‘Value Area High’, which is the highest price in the Value Area, and traders often utilize it as a resistance level. Oftentimes, the price likes to “pierce” these resistances, trapping new bulls that enter a Long and bet on a breakout up above the resistance.
The below shows the volume profile of Bitcoin since the beginning of 2022, where price may have pierced the previous VAH, and might in the near future find profit takers and trapped bulls (thus declining), even temporarily.
Did you like the ForexLive Bitcoin Technical Analysis for April? If so, please share the love and let us know in the comments below!
Most Popular
Select additional content:
Top Forex Brokers
Must Read
Follow Us
Read our Terms, Cookies and Privacy Notice
High risk warning: Foreign exchange trading carries a high level of risk that may not be suitable for all investors. Leverage creates additional risk and loss exposure. Before you decide to trade foreign exchange, carefully consider your investment objectives, experience level, and risk tolerance. You could lose some or all your initial investment; do not invest money that you cannot afford to lose. Educate yourself on the risks associated with foreign exchange trading and seek advice from an independent financial or tax advisor if you have any questions.
Advisory warning: FOREXLIVE™ is not an investment advisor, FOREXLIVE™ provides references and links to selected blogs and other sources of economic and market information as an educational service to its clients and prospects and does not endorse the opinions or recommendations of the blogs or other sources of information. Clients and prospects are advised to carefully consider the opinions and analysis offered in the blogs or other information sources in the context of the client or prospect’s individual analysis and decision making. None of the blogs or other sources of information is to be considered as constituting a track record. Past performance is no guarantee of future results and FOREXLIVE™ specifically advises clients and prospects to carefully review all claims and representations made by advisors, bloggers, money managers and system vendors before investing any funds or opening an account with any Forex dealer. Any news, opinions, research, data, or other information contained within this website is provided as general market commentary and does not constitute investment or trading advice. FOREXLIVE™ expressly disclaims any liability for any lost principal or profits without limitation which may arise directly or indirectly from the use of or reliance on such information. As with all such advisory services, past results are never a guarantee of future results.
Finance Magnates CY Limited