The Priceline Took Strong Bounce:
Since Oct 2019 the priceline of leading cryptocurrency consolidating above the 20 simple moving average on long term month chart and finally taking bounce now.
This time we have more bullish scenario than previous rally when BTC touched $13764 in Jun 2019.
Before previous rally the price action 1st broke down the 20 SMA then moving average convergence divergence (MACD) indicators 1st turned weak bearish from strong bearish and then turned strong bullish on the contrary this time the price action could not break down the 20 simple moving average and consolidated above this SMA and MACD turned strong bullish from strong bearish rather 1st turn weak bearish and then strong bullish and this is the 1s powerful green candle stick is being appeared.
Bitcoin Is Making Higher Lows & Bull Flags:
On day chart the Bitcoin is making bull flags and sofar gained upto 63% value since Dec 2019.
After every bullish move the leading cryptocurrency is being retraced and before taking next bull move it is making higher lows and supports and sofar did not break any of these supports and this is a very healthy sign for a strong bullish move that the price action is making correcting move after every rally.
This Signal Is Appeared Second Time In The History Of Bitcoin:
If we see the Chop zone indicator on long term month chart then it can be clearly seen that the bearish trend is chopped and the trend is turned strong bullish as the chop zone has given strong bullish signals.
This is for the second time happening in the life of Bitcoin as per Bitstamp exchange data 1st the chop zone on month chart was turned strong bullish in May 2016 and then we have seen after this signal the BTC produced more than 4700% profit that was a really very very massive bullish move and this is the second time the chop zone is turned strong bullish let’s see where this signal leads the price action.
The Resistance Is Broken Out:
In previous post we have seen that the price action of Bitcoin was fighting the resistance at $9819.92 and we were expecting a pull back from here to form a handle of cup coz the price action already had formed a round shap for a cup and handle formation $9819.92 was also resistance of this expected cup.
But the price action turned more bullish and broke out the resistance and after breaking out the price action was expected to retest this resistance as support and today the BTC had a pull back upto $9739 and retesting this resistance as support.
Once this retesting will be successful then the price action may move sideways for a while and move up or without moving sideways moves up to the next resistance level at: $10940 and this resistance our next resistance will be at : $1261.10 and then $13200, however if the price action will be failed to retest previous resistance as support at $9819.92 then it can be dropped to previous supports 1st at $9000 the $8252.
The Volume:
Here volume is giving very significant signals if we see the volume indicator’s bars then it is very obvious that the buying volume is more than the sell volume and volume oscillators is at 0 level which is showing weakness of bears therefore we should’t be worried of today’s sell unless the volume oscillators moves up.
I will be keep posting more updates on Bitcoin when there will be more developments.
