A Re-Cap:
In my previous articles I have been showing different support and resistance levels on day chart like 1st the BTC took bullish divergence form $6515 support and brokeout the next resistance level at $8314 and retested that resistance level as support and moved up and broke out next resistance level at $9892.
At this point it was expected that the price action may retest the previous resistance as support at $9892 and move up but this time the price action failed to retest this support and broke down this support.
In my previous articles I have already shared with you that if this support will be broken down then BTC will move down to previous support at $8314 and now the priceline is very close to this support level.
Up Channel And Down Channel:
The price action of BTC was moving in an up channel since 18 Dec but unfortunately on 21 Feb the pricline broke down the support of channel and a new down channel was being formed.
Now we can see that the price action has hit several touches at the support of this new down channel and sofar the priceline did not break down the support of this pattern.
A Cup & Handle:
On 7th Feb I posted an article where I revealed that the price action has formed body of the cup and soon the we can see a pull back that will lead to formation of the handle of this cup.
Now we can see that with the starting of down channel formation the handle formation is also started and sofar the price action has retraced upto 0.50 Fibonacci levels and this is the Fibonacci projection form the bottom to top of the cup.
Previously I had defined the cup’s resistance at 9892 dollars but after that we have several touched at $10350 therefore this time the resistance of the cup is 10350 dollars and new cup and handle is as below:
In above figure it is very clear that the price action is moving within a down channel which is also the handle of this cup and at this time Bitcoin has support of 200 simple moving average if this support will be broken then the price action may hit the 100 SMA support and that is just beneath the previous price action’s support of 8314 dollars. These two supports are too much critical otherwise we may see the Bitcoin hitting the $6515 support.
But if the price line breakout the resistance of handle of this cup as there are chances coz this is bullish continuation pattern then it can also breakout the resistance of cup at $10350 because in more than 80% cases when the price action breakout the resistance of handle then it also breaks out the cup's resistance.
Harmonic Formation:
At this critical point the price action of BTC has formed a bullish butterfly pattern and at this time the price line is entered in potential reversal zone of this pattern.
The important thing here is the 200 SMA is within the potential reversal zone and the price action may use the support of this 200 SMA or may move up without hitting this simple moving average.
The price action can move up within 0.382 to 0.786 Fibonacci projection of A to D leg that is $9093.12 to $10011.83 but if the price action will cross up the 0.786 Fibonacci then it can back to the bull rally for hitting the $11000 resistance again.
In my previous articles I have been showing different support and resistance levels on day chart like 1st the BTC took bullish divergence form $6515 support and brokeout the next resistance level at $8314 and retested that resistance level as support and moved up and broke out next resistance level at $9892.
At this point it was expected that the price action may retest the previous resistance as support at $9892 and move up but this time the price action failed to retest this support and broke down this support.
In my previous articles I have already shared with you that if this support will be broken down then BTC will move down to previous support at $8314 and now the priceline is very close to this support level.
Up Channel And Down Channel:
The price action of BTC was moving in an up channel since 18 Dec but unfortunately on 21 Feb the pricline broke down the support of channel and a new down channel was being formed.
Now we can see that the price action has hit several touches at the support of this new down channel and sofar the priceline did not break down the support of this pattern.
A Cup & Handle:
On 7th Feb I posted an article where I revealed that the price action has formed body of the cup and soon the we can see a pull back that will lead to formation of the handle of this cup.
Previously I had defined the cup’s resistance at 9892 dollars but after that we have several touched at $10350 therefore this time the resistance of the cup is 10350 dollars and new cup and handle is as below:
But if the price line breakout the resistance of handle of this cup as there are chances coz this is bullish continuation pattern then it can also breakout the resistance of cup at $10350 because in more than 80% cases when the price action breakout the resistance of handle then it also breaks out the cup's resistance.
Harmonic Formation:
At this critical point the price action of BTC has formed a bullish butterfly pattern and at this time the price line is entered in potential reversal zone of this pattern.
The important thing here is the 200 SMA is within the potential reversal zone and the price action may use the support of this 200 SMA or may move up without hitting this simple moving average.
