Bitcoin Technical Analysis - Update
After BTC tested the resistance area near 45500, time has come to start price correction and retesting the support areas already created (45500, 43800, and 42500). As I specified, Bitcoin created a bearish Head and Shoulders pattern which was indicating price will move down shortly after testing 455500 resistance area.
As we can notice, BTC price first went down to reach the end of the line for the right shoulder and the price exactly reached that line around 42080. It then started to retest 44K as a local resistance, after which price correction continued until it eventually reach near the strong support line around 45500. Due to high demand and expected buying pressure near that support line, the price of BTC started to bounce back and move upward. The price did some zig zag movements between 43K and 42500. After midnight and before closing the daily candle, the bulls came in and pushed the price near 44K again, the bulls could successfully get the daily candle close price at 44080 which is a positive sign. As I plotted, BTC now created a bullish flag pattern and furthermore created a bullish three white soldiers candlestick pattern which indicates price recovery after the retest. Now we expect the price to move something like the blue line pattern we created.
As we can notice, BTC price first went down to reach the end of the line for the right shoulder and the price exactly reached that line around 42080. It then started to retest 44K as a local resistance, after which price correction continued until it eventually reach near the strong support line around 45500. Due to high demand and expected buying pressure near that support line, the price of BTC started to bounce back and move upward. The price did some zig zag movements between 43K and 42500. After midnight and before closing the daily candle, the bulls came in and pushed the price near 44K again, the bulls could successfully get the daily candle close price at 44080 which is a positive sign. As I plotted, BTC now created a bullish flag pattern and furthermore created a bullish three white soldiers candlestick pattern which indicates price recovery after the retest. Now we expect the price to move something like the blue line pattern we created.
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