moon333

Be Ready For Possible Drop | Bitcoin Is Completing The Gartley

Long
BITSTAMP:BTCUSD   Bitcoin / U.S. Dollar
Hi friends hope you are well and welcome to the new update on Bitcoin . On 1st June 2020 the BTC has spiked up to $10429 as per Bitstamp exchange and tried to breakout the $10,000 resistance level even on the 2nd June the price action spike beyond $10K but could not break out this resistance. Since then the priceline is moving above the $9500 support level . Every day the priceline is hitting at $9500 support level but so far this this support is not broken down. If it is support will be broken down then we may see the next bearish rally up to $8800 that is BTCs previous support.

Up channel and Bollinger bands resistance:
On the daily chart the Bitcoin is moving in an up channel and it was expected that this time the priceline will reach up to the resistance of this channel as it had already visited the support on 25th May 2020. But before reaching the resistance the priceline of leading cryptocurrency dropped down. At this time the price action is moving above the 25 simple moving average . The basic reason that stopped the priceline to reach up to the resistance of the channel was bollinger bands . Because the upper bands of the bollinger bands is below the resistance that is a big hurdle for the price action to move up. And the lower bands of the bollinger band is at the level where the 50 moving average is also moving and that is around $8800 therefore there is possibility that the price action will reach upto this level.

Pennant and EMAs:
On the same daily chart the price action of Bitcoin is also moving in a pennant and after hitting the resistance of pennant the pricline is moved down. I've also placed the exponential moving averages with the time period of 10 and 21. At this time the priceline is retesting these moving averages as support as the exponential moving averages 10 and 21 have been working as strong support for the price action of the leading cryptocurrency since the bullish rally was started after the mid of March 2020. But if the price action will break down these moving averages and the EMA 10 will cross down the EMA 21 then we may see strong downside rally.

Continuously formation of harmonic moves:
The price action of leading cryptocurrency is also forming the different harmonic patterns with the continuity and consistency on the daily chart . The BTC formed a bullish BAT pttern and took a powerful bullish divergence from the potential reversal zone of this pattern. And while moving up the price action started the formation of another harmonic Gartley pattern . It can be easily noticed that at this time the priceline has started the formation of the final bearish leg. The potential reversal zone of this pattern starts from $9317 to $9015. Therefore it can be expected that once the price action will be entered in this PRZ level then it can move up with bullish rally.

Conclusion:
For the completion of the harmonic pattern the price action may drop from $9300 to $9000 or it may also hit the spike up to the simple moving average with the time period of 50 on the daily chart and that is at $8800. However after the completion of the final leg of this bullish pattern we may see another bullish move buy the Bitcoin soon.

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

great chart. detailed overview. appreciate it!
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