Few days back we have seen in my previous post that the Bitcoin had formed a pattern on the . And it is considered as among the traders community and this is a fact that in most of the cases whenever this pattern appears the priceline breaks down the support rather breaking out the resistance. In my previous article I shared some details based on some signals by some indicators and the moving averages and I predicted that this time the Bitcoin will ignore this . And now finally we can see that on 30th April the Bitcoin turned and broke out resistance of pattern.
The bull flags:
In my previous article we have seen the bull flags on short term 4 hour chart, but now the Bitcoin has turned more therefore these bull flags can be easily seen on the as well. And we and if we look at the chat then it can be easily witnessed that the Bitcoin is forming the third . At this time the are being consolidated to form the next expected . But here I would like to share with you that there are some signals appeared that can cancel this if the priceline will be dropped more than 100%.
Priceline is struggling at the resistance of an up channel:
On the same it can be also seen that the priceline of BTC has formed an . The price action was entered in this on 13th of March 2020 and at this time we can see that the are hitting at the resistance of this channel. Since 29th of April this is the 5th attempt by the of leading cryptocurrency to break out the resistance but so far the priceline is moving sideways with the resistance.
A strongest block:
At the same time it can be also observed that on the the priceline is tring to breakout the resistance block from $9,000 to $9500. This is the most strongest block that the Bitcoin is facing since after the drop off Dec 2017. If we take a closer look at the chart then it can be easily witnessed that most of the times this block is working as a strong support and also as a strong resistance as well. At this time it is working as a strong resistance therefore the priceline of Bitcoin got stuck at this level. And in order to break out from this strong resistance block the Bitcoin needs a powerful buying .
Bitcoin is following a certain pattern for move that can be seen using these indicators:
There are more than 5000 indicators available on the tradingview therefore I try to use the combination of the different indicators. And this time after a deep research I am using the combination of three indicators
1st: Vervorrt heikin-ashi long-term oscillator.
2nd: custom indicator , this is the same indicators that we use normally but this indicator shows the buying and sell signals with crosses.
3rd : indicator.
Ater placing these three indicators it is realized that since October 2019 the Bitcoin is following a certain pattern for the correction rally or move.The Vervorrt heikin-ashi long-term oscillator is a powerful indicator that shows whether the priceline is in or . When it turns in green color it means that we are in and when it turns in red color then it means that we are in . Now after taking closer look on the it can be observed that whenever this vervoort indicator turns green then the indicator 1st gives the sell signal and then again it gives buy signal and again it gives sell signal and on this third sell signal if the also gives the bear cross then the Bitcoin turns and starts the rally. It can be witnessed form 24th of October to 25th of November 2019. Then from 23rd of January up to 13th of March 2020. And if we see the current situation then the vervoort is again in green color and giving indication that we are in , and the has given a sell signal and after that we have received the buying signal and at this time the has turned week . Once it will give a complete sell signal with bear cross then we can expect that the Bitcoin will again repeat the same move and start a rally.
A resistance on weekly chart:
Now if we switch to the weekly chart then the movement of the Bitcoin strengthens our fear for the drop . Because on this weekly chart the Bitcoin has formed a down channe and at this time the price action of BTC has hit the resistance of this channel. This is very strong resistance that is not broken out since June 2019. Therefore if the priceline will be failed to breakout this resistance then it may start a rally from here. Once the move will be started then and there can be different theories that where the Bitcoin will move. So there can be different down move destinations. For example on long term weekly chart we have a 100 support at $7100 the Bitcoin may re-test this support again, or the 200 support is at $5700 if the price action of Bitcoin will break down the 100 support then it may be re-test the 200 support. But in my opinion if the price action will be dropped from here then first it will retest the support of an that has been formed on the and that support is around at $7800 once that support will be broken down then we can expect the further drop upto 100 and then 200 on the weekly chart.
The big has done its job:
Here I would like to recall the very big pattern that is formed by the priceline of leading cryptocurrency on the long-term monthly chart. I've been posting this in my different previous articles as well. The buying zone of this starts from $7231 and ends up to $5424, and the as per Fibonacci sequence of this the sell zone starts from $8654 and ends up to $12070. And now we can see that from the buying zone of this pattern the price action took a powerful as per prediction entered in the sell zone. Now the question arises that “is the game over now? or the price action will continue this rally ? “ The answer is that even though the sell targets of this pattern has been achieved but still we have very powerful supports of 100 and 200 simple moving averages on the weekly chart unless these supports will be not broken down we can still hope for a powerful rally.
At this time the Bitcoin is fighting with the resistance levels on the and also on the long term weekly chart as well. Based on some certain indicators Bitcoin can start a correction rally and may re-test the support of the channel that has been formed on the .