The Bitcoin is crossing up a crucial reversal zone of BAT pattern:
In my previous posts we have seen since the price action of Bitcoin formed a pattern on short term 4 hour chart it was not able to cross up the potential reversal zone of this pattern. Whenever the price action tried to cross up this PRZ level it was getting bounced back to the . Now finally the price action has almost crossed up this potential reversal zone of BAT.
Movement towards resistance of channel:
On the price of leading cryptocurrency is moving within an . After getting bounced from the support of this channel the price action started movement towards resistance of this channel on 26th May 2020. During this move the priceline of BTC also has crossed up 25 . If we observe the position of the simple moving averages with the time period of 25, 50, 100, and 200 then it is very positive. As we can see the smallest moving average 25 is above all other moving averages then we have 50 then 200 and the 100 is below all other simple moving averages. Now we need the 100 the cross up the 200 then a complete opened mouth will be formed by these SMAs as it was formed back in June 2019 when the price action was lifted up by this alligator’s mouth up to $13800.
Exponential moving averages has finally provided firm support:
Since the price action of Bitcoin has crossed up the exponential moving averages with the time period of 10 and 21 and the 10 has cross the up the 21 the Bitcoin is using these EMAs as support very well. Now this time again since 20th May the price action was using these two EMAs as support and was likely to break down and the 10 went very close to 21 but finally the price action moved up and the both EMAs again liffted the price line of Bitcoin and provided a firm support as they are providing since after 17th April 2020.
Another is expected:
The leading cryptocurrency is forming different bull flags on with continuity. This time since the first week of May the price action was moving almost sideways within current and it was expected that it will form a new here and will move up soon to form the next . Now finally the price action has left this flag and moving up and is likely to form the next soon.
Oscillators and momentum:
In my previous articles I have been telling you that if the price action moves sideways but the moves upwards or downwards then finally the price action follows the move of unless the does not change its trend. This time we have seen that the was in downtrend and the price action was moving almost sideways but finally the has broken out the down trend and moving towards over bought zone. The has already given bull cross from almost oversold zone and it is still very strong and if we watch the then it is showing that momentum has been changed to as the first green bar is appeared.
10K resistance and based indicators:
At this time the price action is making another attempt to break the $10,000 . But if we watch the then it is less than the when it was making the previous attempts for breakout, moreover the oscillator is also in negative zone. But while Bitcoin was making the previous attempts for breaking out the oscillator was up so indications by these based indicators are bit critical. However if we watch the indicator then positive directional indicator has crossed up the negative directional indicator and the is also moving up that is a very strong single on .
Bitcoin is ignoring the patterns with continuity:
On the we can also notice that the world’s leading cryptocurrency is breaking out the different patterns with continuity. Like currently the Bitcoin formed a pattern that is considered as among the traders community. But the Bitcoin is breaking out the resistance of this rather to breakdown the support. Before this we have already seen that the Bitcoin formed a pattern in April 2020 and rather to breakdown the support the BTC broke out the resistance. So that is another very strong indication by the Bitcoin that it is ignoring the different patterns with the continuity.
Current rising wedge:
Previous rising wedge:
Multi years based symmetrical triangle and moving averages:
Now if we switch to the weekly chart then we can see that the price action of Bitcoin has formed a very big multi years based symmetrical triangle. And the resistance of this triangle has become a very strong rejection line for the Bitcoin . Every time when the price action tried to break out resistance it has been rejected and move down. This time the price action of BTC is again trying to break out the resistance of this symmetrical triangle. This time if we watch the order of the simple moving averages then almost a complete opened mouth is formed on this weekly chart. The only move that is due is the 25 should cross up the 50 as we had such order before 2017 when a complete opened mouth was formed by these simple moving averages. And it lifted the price action to the highest price ever in the history of the BTC that was around $20K. However if the priceline will be rejected from the resistance of this big symmetrical triangle then Bitcoin can re-test the previous support of 50 on weekly chart and at this time it is at $8800.
Few days back different patterns and indicators were giving signals. But on long term the Bitcoin was turning . Now on short term almost all the indicators are turning and on long-term BTC is turned more strong .