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Bitcoin Again Going Parabolic To Hit Upto $300KHi friends hope you are well today we will see how the Bitcoin turns parabolic after every halving event. For this purpose I would like to take you back to the first halvening event of 2012. And on weekly long-term chart we can observe that after the halving event the price action went strong bullish and moved in parabolic way for next one year. This powerful bullish rally was up to 10,000% and that was really a big move. After achieving the highest price the BTC dropped down again and in June 2014 the Bitcoin showed a recovery rally. That was the time when the people would be thinking that it it will be recovered back to the highest price that was $1163 at that time. But the price action moved down again and retraced up to 0.786 Fibonacci level. After this retracement the price action formed a double bottom on the strongest support of 200 simple moving average and turned bullish again. Parabolic move after halving event of 2016: Now if we take a look at the halving event of 2016. Then after this event the price action againg turned parabolic bullish and produced more than 3000% gains. After achieving the highest price the leading cryptocurrency dropped down again and in the month of June 2019 the price action again showed a recovery move up to $13880. And this was the time when we were thinking that the Bitcoin has finally started recovery rally and it will be moved back up to the previous highest price level. That is the $20,000 but the price action of Bitcoin again moved down and retraced up to 0.786 Fibonacci level. This time we can see that the priceline has again formed a double bottom on the 200 simple moving average on this weekly chart like it was happened back in 2015. Parabolic move after halving event of 2020: Now after this double bottom formation on 200SMA the price action has gone through the 2020 halving event. Therefore we can expect another parabolic move by the priceline of BTC. If we notice the previous bullish move after the halving event of 2016 then that was 70% less profitable than the bullish move that was happened after the halving event of 2012. So if we expect the 70% less profit that was produced after the halving event of 2016 then the BTC can easily achieve $100,000 price level. However if the Bitcoin again produces 3000% profit than it can reach upto $300K. Bitcoin is parabolic since came into existence: Now if we take a look at the complete price action of Bitcoin since it has been came into existence. Then it can be clearly seen that the Bitcoin is moving parabolic. And it has never truned bearish, because we can see after achieving every highest price level the Bitcoin retraces between 0.382 to 0.786 Fibonacci retracement level. And the retracement upto 0.786 Fibonacci level can be called a correction move. Therefore we can say that after achieving every highest price in the history of Bitcoin the Bitcoin starts a correction for the next bullish move. The most important factor behind this parabolic move: On this weekly chart we can also observe that the basic reason for the parabolic bullish move of the Bitcoin is the 200 simple moving average. As this moving average is also moving in parabolic shape and not letting the price action to break down this 200SMA support. And this time again the priceline has hit at this support level and took bounce for the next bullish move and the 200 SMA is lifting up the Bitcoin price level in the parabolic way. Conclusion: After every halving event the BTC turns parabolic. If this happens again then Bitcoin can easily reach the $100K to $300K price level within next 2 to 3 years. Note: This idea is education purpose only and not intended to be investment advice, please seek a duly licensed professional and do you own research before any investment.
BITSTAMP:BTCUSDLong
by moon333
Why The Bitcoin Dropping Fast Before The Bitcoin Halving 2020Halvening event of 2012: Hi friends hope you're well and welcome to the new update on Bitcoin. Today we will try to understand why the Bitcoin is dropping fast just before the halvening event. In order to understand this situation we need to move back to 2012 to watch the history of the Bitcoin halving. Then we can observe that when we had the Bitcoin halvening event in November 2012 then BTC started dropping down in August 2012 this drop was started from 18th August to 20th August 2012. And this was a steep waterfall crash after that the Bitcoin recovered but just before the having the Bitcoin dropped down again in October 2012. After that we have witnessed a strong bullish rally of more than 10000% for next one and a half year. Halvening event of 2016: Then in halvening event of 2016 we can notice that before the halving BTC started dropping down in Jun 2016. This drop was started from 19th Jun to 23rd Jun 2012. And this was another steep waterfall crash like we had before the halving of 2012. After that the Bitcoin recovered but just before the halving the BTC dropped down again from 3rd July to 2nd Aug 2016. After that we have witnessed a strong bullish rally of more than 3000% for next one and a half year. Halvening event of 2020: Now in current halvening event of 2020 we can again notice that before the halving BTC started dropping down from Feb to March 2020. This drop was from 15th Feb to 13th Mar 2020. And this was another waterfall crash like we had before the halving of 2012 and 2016. After that the leading cryptocurrency recovered back. But just before the halving the BTC has started dropping down again same as like before in 2012 and 2016. After this drop we can expect a long term bullish rally. This combination of these indicators has given final sell signals: As in my previous posts I told you that I am looking at the movement of BTC using the combination of these indicators to observe the bullish and bearish trend . 1st: Vervorrt heikin-ashi long-term candlestick oscillator. 2nd: Moving average convergence divergence (MACD). 3rd: Stochastic indicator. Ater placing these three indicators I came to know that since October 2019 the Bitcoin is following a specific pattern for the bearish rally. The Vervorrt heikin-ashi long-term candlestick oscillator is a powerful indicator that shows that the priceline is in bullish or bearish trend . When it turns green it means that Bitcoin is in bullish trend and when it turns red color then it means that Bitcoin is in bearish trend . Now after noticing closely the daily chart it can be observe that whenever this vervoort indicator turns green then the MACD indicator 1st gives sell signal and then again it gives buy signal and again it gives sell signal and on this third sell signal if the stochastic also gives the bear cross then the BTC turns bearish and starts the bearish move. It can be witnessed form 24th of October to 25th of November 2019. Then from 23rd of Jan 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 bullish trend , and the MACD has given a sell signal and after that we have received the buying signal and at this time the MACD has given the sell signal. Therefore we can expect that this time the bitcoin again follow the same pattern that it is following since October 2019. And it will start a bearish rally. This time I have also placed the relative strength index (RSI) oscillator. Then we can also observe that whenever we receive the final sell signal by the MACD and the BTC starts bearish rally then the RSI also visits the oversold zone. Therefore we can expect that if the Bitcoin will start a proper bearish move then the RSI will also again visit the oversold zone. Now up to what extent the Bitcoin can drop: Now the question is that if the Bitcoin start a bearish move then up to what extent the BTC will be dropped. For that first of all we need to watch out for an up channel formation that the Bitcoin has formed on the daily chart. This up channel is same as like the previous up channel formation that was formed from December 2019 up Feb 2020. And after breaking down the support of previous channel the price action turned very strong bearish and easily broke down the simple moving averages supports with the time period of 50, 100 and 200. And now it has a again started another up channel from March up till now. Here we can observe after a very strong attempt to break out the resistance of the channel finally the price action is likely to be filled in breaking out and now it is dropping down to hit the support of the channel. Here we have the 100 and 200 simple moving averages supports at the same level where we have the support of the channel and these supports are at $8,000. Then we have the 50 simple moving average support just below the support of the channel. And the 50 simple moving average is moving up to form the golden cross with 100 and 200 simple moving averages. If the 50 SMA will continue this upward move to form the golden then the priceline will not break down the support of this channel, however if the 50 simple moving average will not continue its upward move and it will start moving down then the price action will easily break down the 100 in 200 SMAs and the support of the channel. The Bitcoin has failed in re-testing the resistance block as support: We have already seen that on the daily chart the priceline was trying to breakout the resistance block from $9,000 to $9500 level. This is the most strongest support and resistance block that the Bitcoin could not breakout since after the drop off Dec 2017. Once in the month of February 2020 we have witnessed that a Bitcoin broke out this resistance block. After breaking out this resistance block the Priceline tried to retest previous resistance as support but this re-test was unsuccessful and the priceline dropped all the way down up to $4000. Now again the priceline Now I again the priceline of leading cryptocurrency has repeated the same move. The Bitcoin broke out the resistance of this block from 8th to 9th May 2020 and after breaking out the BTC tried to retest the previous resistance as support but again it has failed to retest this resistance block as support and dropped down. The Bitcoin is likely to be failed in breaking out the resistance of channel on long term chart: Now I would like to divert your attentions toward the down channel that has been formed on the long-term weekly chart. And we can see here that the priceline was also trying to break out the resistance of this down channel. But so far it is not successful in breaking out the resistance. If the Bitcoin will break down the support of the channel that has been formed on the daily chart then it may retest the 100 simple moving average support that we have within the down channel on this weekly chart. And this 100 SMA support is at this time at $7,100. If the price action will breakdown the 100 simple moving every support then it may retest the 200 SMA support and that is at $5700 at this time. And in case of breaking down the 200 simple moving average the Bitcoin may re-test the support of this down channel and that is at $4,800. However I'm not expecting as that much powerful downward move. In worst situation I'm expecting that the Bitcoin will take a bullish bounce from the 200 simple moving average support as we have already discussed in my previous articles that this is the strongest support ever in the history of Bitcoin that has been never broken down since it is appeared. However the further downward move depends in breaking down the support of an up channel on daily chart. Conclusion: All the chart patterns and the indicators are giving bearish signals, therefore the priceline of Bitcoin may turn bearish on short-term. But on long-term after the halving event we can expect a very strong bullish rally for at least 2 years. Note: This idea is education purpose only and not intended to be investment advice, please seek a duly licensed professional and do you own research before any investment.
BITSTAMP:BTCUSDLong
by moon333
5
This Is Why The Bitcoin Is Going To Hit $300K After HalveningHi friends hope you are well. Today I'll show you the most significant move by the Bitcoin that can lead it to hit 300K. But before that I would like to show you some developments on the small time charts because these moves are interconnected with the biggest move that I'm expecting in the next one or two years. The bull flags on daily chart: As in my last article we have observed that the leading cryptocurrency is aggressively forming a different bull flag on the daily char. And in previous post we were expecting the 3rd bull flag. At that time the candlesticks were being consolidated to form the next bull flag. And now we can see that the priceline has moved up and now it is confirmed that the third bull flag has been formed. Now after reaching the $10,000 level the price action may consolidate at this level to form the next bull flag or it will move a little bit more up and then consolidate. The Bitcoin may re-test the resistance block as support: We have already seen that on the daily chart the priceline was trying to breakout the resistance block from $9,000 to $9500 level. This is the most strongest support and resistance block that the Bitcoin could breakout since after the drop off Dec 2017. Once in the month of February 2020 we have witnessed that a Bitcoin broke out this resistance block. After breaking out this resistance block the Priceline tried to retest previous resistance as support but this re-test was unsuccessful and the priceline dropped down all the way up to $4000. Now again the priceline is breaking out this resistance level. The current candlestick is opened above this block. And once the complete candlestick will be opened and closed above this bock like the priceline did this in the month of February then the first step of the breakout will be confirmed. But the final confirmation for breakout will be received when price action of BTC will retest this previous resistance as support and after a successful retest priceline will be moved up from here. Bitcoin is likely to be failed in breaking out the up channel resistance: On the daily chart the priceline has formed an up channel. That was started from 13th of March 2020. And this time the price action of BTC is trying to hit hard to break out the resistance of this channel. At this time we have the 3rd candlestick that is hitting at the resistance to have a breakout. Before this we had candlestick of 30th April that was reached up to $9,485 at the resistance of the channel for the breakout. Then the price action reached at $10,000 level on 7th and 8th May 2020. And now there was a strong hope that the priceline will break out the resistance. But again the price action is likely to be consolidated at this level. Now there are two possibilities that the priceline may form a bull flag at this level and move up to break out the resistance or move down again to re-test the support of this channel that is almost at $8,500. This combination of indicators can give us best signal for bearish move: As in my previous post I told you that I am using the combination of three indicators to watch the bullish and bearish trend of BTC on daily chart. 1st: Vervorrt heikin-ashi long-term candlestick oscillator. 2nd: MACD custom indicator multiple time frame , this is the same MACD indicators that we use normally but this indicator shows the buying and sell signals with crosses. 3rd: Stochastic indicator. Ater placing these three indicators I came to know that since October 2019 the Bitcoin is following a certain pattern for the correction rally or bearish move.The Vervorrt heikin-ashi long-term candlestick oscillator is a powerful indicator that shows whether the priceline is in bullish or bearish trend . When it turns green it means that we are in bullish trend and when it turns in red color then it means that we are in bearish trend . Now after observing closer the daily chart it can be seen that whenever this vervoort indicator turns green then the MACD 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 stochastic also gives the bear cross then the leading cryptocurrency turns bearish and starts the bearish move. It can be witnessed form 24th of October to 25th of November 2019. Then from 23rd of Jan 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 bullish trend , and the MACD has given a sell signal and after that we have received the buying signal and at this time the MACD has turned weak bullish so its mean that it is turning bearish. Once it will give a complete sell signal with stochastic bear cross then we can expect that the BTC will again repeat the same move and start a bearish rally. The down channel on long term: On the long term weekly chart the Bitcoin has formed a down channel and at this time the price action of BTC is trying to breakout the resistance of this channel. Once the bearish move will be started then the Bitcoin can retest the 100 simple moving average support at $7100, or the 200 simple moving average support is at $5700. But in my opinion if the price action will be dropped from here then first it will retest the support of an up channel that has been formed on the daily chart and that support is around at $8500 once that support will be broken down then we can expect the further downward move upto 100 SMA and then 200 simple moving average on the weekly chart. The most significant signal is going to be appeared soon that can lead the BTC price to 300K: Now I want to show you the most significant signal that is going to be appeared after the Bitcoin halving that can lead the BTC price upto $30000. For better understanding we need to see the history of this signal so let's move back to the first Bitcoin halving event in 2012. The Bitcoin halvening 2012: For this purpose I have used long term weekly chart and placed the four simple moving averages with the time period of 25, 50, 100, and 200. In 2012 the 100 and 200 simple moving averages were not available therefore we will find this signal using only 25 and 50 SMAs, then we can see that just before the Bitcoin halving the 25 simple moving average form the golden cross with 50 simple moving average then after the Bitcoin halving we had the strong supports these two SMAs. Further in July 2013 the 100 simple moving average was also appeared below the 25 and 50 simple moving averages. Here we had a complete a opened alligator mouth formed by these three simple moving averages. And all these SMAs lifted the price action up very aggressively and the Bitcoin started more than 10000% bullish rally and produced ROI (return on investment) with 1 : 10K ratio within one year. The Bitcoin halvening 2016: Now let's move forward to the next halvening event in the year of 2016. Then we can see that just before the halvening the simple moving averages formed an opened alligator’s mouth for forming goden crosses with each other, as we can see that the 200 smple moving average was below all other simple moving averages then 100 moving average was above 200 moving average, then the 50 SMA was above the 100 SMA and the smallest moving average with the time period of 25 was above all four SMAs. And after halvening all these simple moving averages lifted the Bitcoin up very aggressively and the price line of BTC produced more than 3000% return on investment ratio within one and a half year. The Bitcoin halvening 2020: Now when almost three days are left in the 2020 halvening event then we can observe that almost an opened alligator mouth by these four simple moving averages is formed. Only the golden cross between 25 and 50 moving averages is due. Once the smallest moving average with the time period of 25 will cross up the 50 simple moving average then we will have the order of these moving averages like 25 simple moving average above all then we will have the 50 SMA below the 25 after that we will have the 100 simple moving average below 50 and the 200 SMA will be below all other SMAs. Then a complete opened alligator mouth will be formed and after completion of this alligator mouth we can expect a really very powerful bullish rally that can be continued for next two years. If we compare the ROI ratio that was produced in the after 2016 halvening then it is 70% less than the ROI ratio that was produced after the halvening of 2012. As we have seen that in 2012 the return on investment ratio was more than 10000%. Now in order have an estimate the next ROI ratio we can expect 70% less ROI than the ROI after halvening of 2016. And in my point of view that will be very conservative approach. And in this way the next return on investment ratio would be e 1000%. Its mean that Bitcoin can easily hit $100,000. But it is also possible that the Bitcoin will produce up to 3000% rally as it has already produced after the previous halvening of 2016. And it this time it will be difficult for the moving averages to form a complete opened alligator mouth before the halving event. Because one candlestick is representing one week and there are only approximately 3 days are left in the next halving event. However it doesn't matter whether this alligator mouth will be oepened before the halvening or after. Whenever it will be formed it will produce a very powerful gleefully that can be continued for atleast next two years. Conclusion: On the daily time period chart if the price line of BTC will not break out the up channel and we will receive strong bearish signal by the MACD indicator then there are strong chances that the price action may start a correction rally, however on the long term the Bitcoin will be remain bullish and after having event it can turn more strong bullish.
BITSTAMP:BTCUSDLong
by moon333
4
Taking a long here after a great retracement.For B's Learning. Using some of the most basic features, right now was a good spot for a low Risk Vs Reward position. There is a long standing support close by since the March low, I will increase my position if it drops to the .78 Fib before support line is higher. I will follow just under the support line with my stop loss, currently a 2.75 Risk to reward. easy pickings. Will double position size If .78 Fib is touched pre-support line. Dont trade risky set ups, be patient. be calm, learn the market, know your limits. use basic indicators with a bit of knowledge of overall market sentiment. this is a simple process. trade Fib levels, trade major support lines. potentially can ride this trade for a few days into the halving if all goes well. Stop loss will be set tight, but in a normal market i would take profit at given levels. BTC is looking a bit unpredictable atm, so always be waiting for the Market Movers to hunt your stop loss before any significant moves. If you can wait for a bit shake always do so.
Long
by cazzaxx
Bitcoin Bull and Bear viewBTC Analysis on the weekly time frame Bitcoin forming a triangle formation with LHs and HLs. It is currently finishing its Wave D which shall stretch upto 61.8% FIb extension ABC. This shall give the Target 1 as 10,000 which seems to be achieved anytime soon. A further extension of the Wave D to 100% Fib extension ABC shall give the Target 2 level at 14200-14500. Any pullback to Wave E shall be suggested to reach fib retracement level 50%-61.8% giving the buy zone at 7300 levels. The bear phase shall start if the bitcoin pullback stretches further to 88% of Fib Retracement level at 5000 which shall be very difficult for bear currently. Stay alert and happy trading!
COINBASE:BTCUSDLong
by kuberbindra1
Bitcoin | We Need To Watch out For These Bearish SignalsBitcoin ignored the bearish pattern: Few days back we have seen in my previous post that the Bitcoin had formed a rising wedge pattern on the daily chart. And it is considered as bearish pattern among the traders community and this is a fact that in most of the cases whenever this rising wedge pattern appears the priceline breaks down the support rather breaking out the resistance. In my previous article I shared some details based on some bullish signals by some indicators and the moving averages and I predicted that this time the Bitcoin will ignore this bearish pattern. And now finally we can see that on 30th April the Bitcoin turned bullish and broke out resistance of rising wedge 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 bullish therefore these bull flags can be easily seen on the daily chart as well. And we and if we look at the chat then it can be easily witnessed that the Bitcoin is forming the third bull flag. At this time the candlesticks are being consolidated to form the next expected bull flag. But here I would like to share with you that there are some bearish signals appeared that can cancel this bull flag if the priceline will be dropped more than 100%. Priceline is struggling at the resistance of an up channel: On the same daily chart it can be also seen that the priceline of BTC has formed an up channel. The price action was entered in this up channel on 13th of March 2020 and at this time we can see that the candlesticks are hitting at the resistance of this channel. Since 29th of April this is the 5th attempt by the candlestick of leading cryptocurrency to break out the resistance but so far the priceline is moving sideways with the resistance. A strongest support and resistance block: At the same time it can be also observed that on the daily chart the priceline is tring to breakout the resistance block from $9,000 to $9500. This is the most strongest support and resistance 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 volume. Bitcoin is following a certain pattern for bearish 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 candlestick oscillator. 2nd: MACD custom indicator multiple time frame, this is the same MACD indicators that we use normally but this indicator shows the buying and sell signals with crosses. 3rd : Stochastic 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 bearish move.The Vervorrt heikin-ashi long-term candlestick oscillator is a powerful indicator that shows whether the priceline is in bullish or bearish trend. When it turns in green color it means that we are in bullish trend and when it turns in red color then it means that we are in bearish trend. Now after taking closer look on the daily chart it can be observed that whenever this vervoort indicator turns green then the MACD 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 stochastic also gives the bear cross then the Bitcoin turns bearish and starts the bearish 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 bullish trend, and the MACD has given a sell signal and after that we have received the buying signal and at this time the MACD has turned week bearish. Once it will give a complete sell signal with stochastic bear cross then we can expect that the Bitcoin will again repeat the same move and start a bearish rally. A down channel 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 bearish rally from here. Once the bearish 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 simple moving average support at $7100 the Bitcoin may re-test this support again, or the 200 simple moving average support is at $5700 if the price action of Bitcoin will break down the 100 SMA support then it may be re-test the 200 SMA support. But in my opinion if the price action will be dropped from here then first it will retest the support of an up channel that has been formed on the daily chart and that support is around at $7800 once that support will be broken down then we can expect the further drop upto 100 simple moving average and then 200 simple moving average on the weekly chart. The big bullish Gartley has done its job: Here I would like to recall the very big bullish Gartley pattern that is formed by the priceline of leading cryptocurrency on the long-term monthly chart. I've been posting this Gartley pattern in my different previous articles as well. The buying zone of this Gartley pattern starts from $7231 and ends up to $5424, and the as per Fibonacci sequence of this Gartley pattern the sell zone starts from $8654 and ends up to $12070. And now we can see that from the buying zone of this bullish Gartley pattern the price action took a powerful bullish divergence 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 bullish rally ? “ The answer is that even though the sell targets of this bullish Gartley 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 bullish rally. Conclusion: At this time the Bitcoin is fighting with the resistance levels on the daily chart 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 daily chart.
BITSTAMP:BTCUSDLong
by moon333
Is This V Shape Recovery Of Bitcoin Is A Warning For A Big Drop In my previous article we have seen that the Bitcoin was forming bull flags on the small time period 4 hour chart and during the bull flags formation the price action also formed a down channel. And after breaking out the down channel resistance the Bitcoin was forming more bull flags. The price action was being consolidated in next expected flag and now it can be easily seen that the price action has taken another bullish divergence and now we can expect the new bull flag. Bull flags formation of daily chart: Now the Bitcoin has turned more aggressive in forming new bull flags even the these bull flags can be seen on the bigger time period chart as well. If we switch to the daily time period chart then it can be easily observed that so far we have received two bull flags and now the 3rd bull flag is expected. Rising wedge the bearish reversal signal is being canceled: As we have discussed in my previous article that a bearish reversal pattern is appeared on the daily chart and that is the rising wedge. This is strongly considered a bearish reversal pattern among the traders community but this time the priceline is likely to breakout the resistance of the pattern rather to break down the support. If you look at the chat then a strong bullish candlestick is crossing up the resistance of the rising wedge pattern and this bullish candlestick is also crossing up the 100 in 200 simple moving average resistance levels. And once the priceline will be completely closed above these resistance levels then we can consider a complete breakout from this rising wedge pattern after that the priceline may re-test the resistance of the rising wedge pattern as a support and move up again or there is also a possibility that the price action will turn more bullish and move more up without retesting the previous resistance as support. However if the priceline of the leading cryptocurrency won't be able to completely break out the resistance of the rising wedge pattern and if it will break down the support then it can be moved up again after hitting the $5700 levels. Because the volume profile of the complete pattern is showing very low interest of the traders below this level. Is this V shape recovery is warning of Kiss Of Death? Now let's talk about the situation that most of the traders are talking about and that is the V shaped recovery of the Bitcoin. After strong bearish move the Bitcoin has started a bullish rally that has formed a V shape and most of the traders are thinking that after a strong bearish move this V-shaped rally is a warning to a big drop that is also called “Kiss Of Death” and this expected bearish move can lead The priceline to retest the previous low or it can be moved more down. But if we see the recent bearish rally that was started from 13th of Feb 2020 then during this rally the Bitcoin has formed a price rejection line from where the price action of Bitcoin has been rejected again and again. And finally after been rejected on 9th of April on the second attempt on 16th of April the priceline of leading cryptocurrency has broken out that rejection line. This rejection line was very strong resistance for the Bitcoin now it is working as a strong support therefore if the price line will move down from here then this support will stop the price line to move more down than this level. Will Bitcoin be rejected by EMA 21 on monthly chart? Now let's talk about another situation that the traders are talking about. And that is on monthly chart. Here most of the traders are thinking that if the priceline of Bitcoin will be rejected by the exponential moving average 21 then there will be more chances of this Kis Of Death Situation. But this theory is wrong because if we see closely on the chart then it can be clearly observed that sofar the price action did not break down the EMA 21 therefore using the word “rejection” is not appropriate. In fact the price line is getting bounced from this exponential moving average. We would use the word rejection once the priceline completely breakdown this EMA 21 and then it would try to move back and break out this exponential moving average. Even we have a kind of double bottom situation on this EMA on this monthly chart. And we have two more bullish signals. If we see the candle stick of 1st Jan 2020 then it is a strong bullish engulfing and now on the current candlestick that was started on 1st April we can see that this is another bullish engulfing candlestick. Af these two more bullish signals we can expect a powerful bullish move from here. The Bitcoin has broken out the 100SMA resistance on long term chart: Now if we switch to the weekly chart then we can easily see that 1st the candlestick has taken a strong bounce from the 200 simple moving average on the weekly chart. And now broke out the 100 simple moving average. After the complete breakout the priceline will have very strong support of these two simple moving averages and it will be easy for the priceline to hit the next resistance level at $12325. The big bullish Gartley has done its job: Here I would like to recall the big bullish gartley pattern that has been formed on the monthly chart by the price line of Bitcoin. After entering in the potential reversal zone of this big bullish gartley pattern the price line is getting bounced and moving towards the Fibonacci projection area of A to D leg. Now for the safe trade if you have bought the Bitcoin from the potential reversal zone as I have defined on the chart then you can sell it between the sell targets that I have defined as Fibonacci sequence. But I am expecting that this time the priceline will turn more bullish and will make another attempt to breakout the $12325. However the stop loss is important therefore the potential reversal zone of this bullish Gartley pattern or the 200 simple moving average on the weekly chart can be used as a stop loss. As per Gartley targets are as below: Buy between: $7231 to $5424 Sell between: $8654 to $12070. Conclusion: The bearish theory for rising wedge pattern is likely to be failed this time. A resistances are converting to supports for Bitcoin. The bullish journey that was started on hourly chart is being converted to monthly chart that can lead to more powerful bullish move. Note: This idea is education purpose only and not intended to be investment advice, please seek a duly licensed professional and do you own research before any investment.
BITSTAMP:BTCUSDLong
by moon333
3