BTCUSD Technical Analysis 18.03.2018

In the H4 chart, the downtrend continues. After finishing the short-term correction and breaking the local low at (1), BTCUSD has fallen towards the next resistance and make a new swing low at 7700. Then it traces back to MA20 and make a higher low, showing that bear is still dominating the market. Then BTCUSD continued to go down and may made a new swing low again at 7600. If this is a swing low, it’s a clear proof that the bear market will going to the end soon because this swing low is only lower 100 pts compare to the last swing low. You also see Stoch(8,3,3) do not make a new swing low.

I forecast BTCUSD will make a short-term pullback to MA20 or trend line. Then it will continue to fall down to next resistance 7200, while Stoch(8,3,3) make a new higher low. It indicates a divergent trade.

As we can see in the H1 chart, the pair makes a clear divergent trade. So I think it will pullback to the trendline.

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