Hey friend hope you are well and welcome to the new update on Bitcoin. In my previous post we have seen the Bitcoin formed a bullish cypher pattern and started a powerful bullish move from the potential reversal zone of the cypher and reached even beyond $11,000 levels.
The wedge has been broken out:
The price action of the leading cryptocurrency was moving in a wedge since first week of May 2020. After reaching at the support on 27 June the priceline moved up to the resistance. In the meanwhile we have received two significant bullish signals by the moon phases indicator and the volume profile as well. The new full moon was appeared at high altitude above the resistance of the wedge. That was a clear signal that the price action of BTC can reach up to this level. The volume profile was showing very weak interest of the traders even above the support of this wedge pattern. The point of control of volume profile was moved above the resistance that was another signal for the breakout.
The price action has spiked beyond 11K with powerful buying volume:
The price action has finally broken out the $10,000 resistance level and even spiked beyond $11,000. If we see the volume indicator then there is a continuity of buying volume especially on 27th of July. If we watch the volume oscillator indicator (that shows the power of volume) then the power of buying volume was up with powerful value of 39.
Now I would like to draw your attention towards two significant signals. If they won’t appear then we cannot confirm that the Bitcoin bull run has finally begun. As we have already seen that the price action is moving in a big symmetrical triangle that was started back in 2017 and the resistance of this triangle has become a very powerful rejection line. Whenever the price action reached at this resistance level
It has been strongly rejected. At this time the price action is crossing up this powerful rejection line. But so far we don't have even a single candlestick that is completely closed above this resistance level. Therefore to confirm the bull run we need the closing above this resistance level on the weekly chart. The second signal is that the bull cross between the 25 and 50 simple moving averages is still due. As we can see we have the 50 simple moving average above all then 25 then 100 and then 200 below all other simple moving averages. Once the 25 simple moving average will cross up the 50 SMA then a complete opened alligator mouth by the simple moving averages will be formed like it was formed back in 2017. When the price action started a parabolic bullish move that was more than 3000%. Therefore once a complete alligator mouth will be formed same as like back in 2017 then we can expect that the will be started and then the priceline will again move up in a parabolic way on the long term.
Conclusion:
After breaking out the wedge pattern on the daily chart so far the price action did not start any correction rally. Therefore, there are chances that if the buying volume will be decreased then the price action of BTC may re-test the previous resistance as a support or at least it will use the $10,000 resistance level as support and then start the next rally. However if the buying volume will continue to increase then we can expect that the Bitcoin will not stop and also won’t start any correction rally and it will also break out the symmetrical triangle on the weekly chart in very obvious way by closing above the resistance level.
The wedge has been broken out:
The price action of the leading cryptocurrency was moving in a wedge since first week of May 2020. After reaching at the support on 27 June the priceline moved up to the resistance. In the meanwhile we have received two significant bullish signals by the moon phases indicator and the volume profile as well. The new full moon was appeared at high altitude above the resistance of the wedge. That was a clear signal that the price action of BTC can reach up to this level. The volume profile was showing very weak interest of the traders even above the support of this wedge pattern. The point of control of volume profile was moved above the resistance that was another signal for the breakout.
The price action has spiked beyond 11K with powerful buying volume:
The price action has finally broken out the $10,000 resistance level and even spiked beyond $11,000. If we see the volume indicator then there is a continuity of buying volume especially on 27th of July. If we watch the volume oscillator indicator (that shows the power of volume) then the power of buying volume was up with powerful value of 39.
Now I would like to draw your attention towards two significant signals. If they won’t appear then we cannot confirm that the Bitcoin bull run has finally begun. As we have already seen that the price action is moving in a big symmetrical triangle that was started back in 2017 and the resistance of this triangle has become a very powerful rejection line. Whenever the price action reached at this resistance level
It has been strongly rejected. At this time the price action is crossing up this powerful rejection line. But so far we don't have even a single candlestick that is completely closed above this resistance level. Therefore to confirm the bull run we need the closing above this resistance level on the weekly chart. The second signal is that the bull cross between the 25 and 50 simple moving averages is still due. As we can see we have the 50 simple moving average above all then 25 then 100 and then 200 below all other simple moving averages. Once the 25 simple moving average will cross up the 50 SMA then a complete opened alligator mouth by the simple moving averages will be formed like it was formed back in 2017. When the price action started a parabolic bullish move that was more than 3000%. Therefore once a complete alligator mouth will be formed same as like back in 2017 then we can expect that the will be started and then the priceline will again move up in a parabolic way on the long term.
Conclusion:
After breaking out the wedge pattern on the daily chart so far the price action did not start any correction rally. Therefore, there are chances that if the buying volume will be decreased then the price action of BTC may re-test the previous resistance as a support or at least it will use the $10,000 resistance level as support and then start the next rally. However if the buying volume will continue to increase then we can expect that the Bitcoin will not stop and also won’t start any correction rally and it will also break out the symmetrical triangle on the weekly chart in very obvious way by closing above the resistance level.
