moon333
Long

BTC broke out the wedge and forming bull flags with continuation

BITSTAMP:BTCUSD   Bitcoin / U.S. Dollar
The Bitcoin has broken out the wedge:
In my previous post we have observed that on hourly chart the priceline was moving in a wedge since 20 March 2020 and at that time time the BTC was at the center of the wedge . And I shared my expectations that there were more chances of break out rather to break down. At that time the resistance of the wedge was at $6800 and in order to break out this resistance BTC needed the closing above this resistance level . And now we have witnessed that the priceline has closed above this resistance of wedge and finally broke out.

Before breakout:

After breakingout:

Bull flags:
in previous thirst we were looking at the bull flags formed by the Bitcoin on hourly chart but now as the priceline of BTC has turned more bullish therefore the bull flags can be seen even on the 4 hour charts as well. It can be easily examined that after every bullish divergence the price action of Bitcoin accumulates and moves up to form the next bull flag . By doing so the price range of the leading cryptocurrency has formed the third gull flag from 29th March up till now. And it can be clearly seen that at this time the Bitcoin is being accumulated for the next bullish move to form the next bull flag . In the meanwhile the 50 simple moving average has also formed a golden cross with 200 SMA just beneath the candlesticks on this 4 hour chart that is very powerful bullish signal.

A new channel:
Now on 4 hour chart the king of all cryptocurrencies has formed an up channel . And at this time the priceline moving within this channel and in order to break out from the channel the price range needs to close above the resistance that is at $8400 at the moment.

Powerful bounce form 200 SMA and hitting the 100 SMA resistance:
Now I would like to take you to the long term weekly chart and as we have already seen that the priceline has taken very good bounce from the 200 simple moving average on weekly chart and likely to turn bullish now. At this time it can be easily witness that the priceline has touched the 100 simple moving average resistance. This resistance is at $7087 at the movement. And the price action has hit the spike at $7469 but so far the candlestick is not able to cross up or close above this 100 simple moving average resistance. Once the Bitcoin will be able to cross up this resistance level then we will witness very powerful bullish rally because at that time we will have strong supports of 200 and 100 simple moving averages both at the moment and these both simple moving averages will lift the price up.

The priceline is repeating the same act:
Now I would like to divert your attentions to the comparison that I have been posting in my previous articles. When the Bitcoin was moving above the down trend line from 2018 to 2019.After when the priceline reached below the area where the traders interest was very weak as per volume profile of complete priceline moving about that down trendline then the price action took powerful bullish divergence and produced more than 300% profit. Now again we can see that the price line of Bitcoin is moving above a down trend line same is like the previous one. This trendline started from June 2019 and now finally the price line is likely to take the bounce after hitting at this trend line in March 2020. And we can easily examine that this time when the price line moved below the area where the trader’s interest is very low as per volume profile of complete price range moving above this trend line then it has started moving up. As per current situation the trader’s interest is low below $7000 and the point of control of the volume profile is $10350.

Big bullish Gartley move a key of bullish rally:
And I would like to also recall the very big bullish Gartley pattern again in this post that is formed on monthly chart as this pattern key for the big bullish rally for the Bitcoi. We can see that after the completion of this big bullish Gartley pattern the price line has even moved beyond the potential reversal zone but in the very next candlestick it is move back in the PRZ level and this move is showing that this pattern is still in play.


Note: This idea is education purpose only and not intended to be investment advice, please seek a duly licensed professional and do you own research before any investment.

Comments

Nice analysis. Liked :)

BTCUSD should move sideways today. Analysis below.
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