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BTCUSD Bearish Move Revealed Two More Powerful Bullish Signals
Hi guys and gals hope you are well, welcome to the new update on Bitcoin This time the price action has revealed two more powerful bullish signals which can move lead the priceline of BTC to achieve highest price in the history of Bitcoin but before moving to those signals lets see some mid term analysis then it will be easy for us to understand the move of BTC.
Formation Of Bearish Reversal And Bullish Reversal Patterns At A Same Time:
The price action of Bitcoin was forming bearish and bullish patterns at a time one was the Head and Shoulder pattern another one was the Cup & Handle formation.
Cup & Handle Pattern A Bullish Reversal Pattern:
This Cup & Handle was started on 24th October 2019 and after forming the body of the cup the formation of handle was started in the month of Feb 2020. The resistance of the cup was at $10350 and it was expected that once the priceline will break out the resistance of the handle it will also break out the resistance of the cup as well. Up til 5th of March the price line retraced upto the golden ratio of 0.618 Fibonacci level and I was expecting that if this golden ratio will be not broken down then there are chances that the price actio can take the bullish divergence from this level and soon it will break out the resistance of the cup as well. But today after the strong bearish move we can examine that the priceline of Bitcoin has retraced more than 100% and the cup and handle pattern is now invalidated.
Head & Shoulder A Bearish Reversal Signal:
on the other side a bearish reversal pattern was being formed on 4 Day chart and that was Head & Shoulder pattern. It was started on 18th of December 2019 and completed on 7th March 2020. 8th of March was the decision making day for the Head and Shoulder pattern because on that day a strong bearish read candlestick was appeared and we received a bear cross by the stochastic and the moving average convergence divergence (MACD) also turned strong bearish from weak bearish and the price line crossed down the neckline of Head & Shoulder pattern and today the Bitcoin has hit at $5713 that is the recent lowest price by the price action of BTC as per Bitstamp exchange.
Support and Resistance Levels:
In my previous articles we have examined that after breaking out every resistance level the price line of Bitcoin was retesting the previous resistance level as support and moving up. When the Bitcoin broke out the $9819 resistance then it was expected that the price action of BTC will retest this resistance as a support and after the successful retesting the price action was expected to move up to the next resistance level at $10,398. But unfortunately the price action has failed in retesting this resistance level as a support and moved back to the previous support at $8314. The leading cryptocurrency did not stop here and even moved more down to the next support level at $6550.
Long Term Downward Trend Line And Volume Profile:
In my previous article I have revealed that the price action of BTC has formed a new long-term trend line on weekly chart and we have so many touches at this trend line therefore this line cannot be ignored. After placing the volume profile on the complete priceline moving above this trend line we can examine that the point of control of this volume profile if at $10,300. the POC always works as centre of gravity as it always pulls the price action towards itself and we can witness that the price action is moving around the point of control level, whenever the price action moves upward or downwards it always moves back to the POC. Guys the Bitcoin needs to break out this POC level as soon as possible cause if we will have few more touches around this POC level then another trend line will be formed above the priceline and in that case a down channel will be formed. And after appearing this down channel it will be difficult for the leading cryptocurrency to break out the resistance of this down channel. And as we have discussed in my previous article that in order to have a break out from this POC level we need buying volume with the continuity as we had from Feb 2019 up to June 2019 but unfortunately sofar we are not having as that much powerful buying volume. Even now we can see that the volume oscillator is triggered with the value of more than 8 level on weekly chart in favour of bears. And value of volume oscillator at 8 level is very strong on weekly chart.
This time I am not expecting that the price action will hit at the support of this downtrend line because the volume profile of this complete trend line is showing very low interest of the traders below 7500 dollars therefore the price action can move up at any time or can move sideways at this level unless the traders interest gets develop below this level.
But if the traders interest will be developed below $7,500 level then there is possibility that the price action of BTC will move more down to hit the trend line support.
Simple Moving Averages:
On weekly chart the price line is above very strong support of 100 in 200 simple moving averages. At this time the price action is hitting at the support of 100 moving average and likely to hit at the support of 200 SMA as well. These both moving averages are very strong support for the price action of Bitcoin since December 2015 as both moving averages were not broken down upto November 2018. And that was only 100 simple moving average that was broken on November 2018 the 200 moving average is not broken down so far. After when the price action broke down the support of 100 SMA it droped down to the 200 simple moving average support and consolidated there and took a very powerful bullish divergence and produced more than 300% profit.
Now I would like to share with you a very important move of priceline of leading cryptocurrency that can lead the price action to the highest price ever in the history of Bitcoin.
If we see the ichimoku cloud on weekly chart then back in 2014 in the month of May when the cloud was turned bullish the price action crossed down the cloud and after crossing down the cloud the priceline moved up again and hit at the resistance of the cloud and failed to cross up the cloud and dropped down again then cloud and turned bearish and for long time period the price action of Bitcoin moved sideways and after consolidation the priceline again took bullish divergence and produced more than 5000% huge profit.
Now in current time period we can see the king of all cryptocurrencies is likely to take the same move again. The price line has crossed down the cloud when the cloud turned bullish and in the month of February 2020 the price action has hit the resistance of the cloud but has failed to cross up the cloud and now dropped down again. Now the ichimoku cloud is turned bearish again. Now we can see a long term and short term sideways move at this level and after consolidation the price action may take the same move and cross up the cloud for a powerful bullish rally.
Harmonic Moves On Long Term Monthly Chart:
Now I would like to share with you the most powerful signal and pattern which is appeared on the very long term monthly chart and that is very big bullish harmonic pattern formed by the price action of Bitcoin. But before taking you to the current harmonic move I would like to show you the previous harmonic move of BTC on long-term monthly chart. Below is the chart that I published on April 2019 on this post you can see after hitting the highest price ever in the history of Bitcoin the priceline dropped at0.786 Fibonacci level. The price action had a strong support of 50 simple moving average and on monthly chart 50 simple moving average is considered very strong support. With this signal I used some other indicators and signals and based on my study and analyses I predicted that the price action has confirmed that it is going to form a complete Gartley pattern soon. Then we have witnessed that the priceline moved in the same way as I predicted and formed a complete Gartley.
Now we can see that the price action of Bitcoin has completed the formation of another Gartley pattern on month. The initial leg was started on December 2018 and has ended on January 2019 then we can see that the price action has a retraced up to 0.786 Fibonacci level on December 2019. Then the price action projected between 0.382 0.886 Fibonacci projection of A to B leg and completed the C leg on Feb 2020. Now the price action was suppose to take another drop to retrace between the Fibonacci level from 0.618 to 0.786 and after today's drop the price action has entered in the potential reversal zone of the bullish Gartle pattern and has completed the final leg. Now from here the leading cryptocurrency can take the bullish divergence at any time from the potential reversal zone and suppose to move in the projection area of A to D leg from 0.382 to 0.786 Fibonacci.
This bullish divergence can help the price line of Bitcoin cross up the ichimoku cloud on weekly chart and Bitcoin can repeat the same powerful bullish move as it has taken from 2016 to 2017 and achieved highest price.
Formation Of Bearish Reversal And Bullish Reversal Patterns At A Same Time:
The price action of Bitcoin was forming bearish and bullish patterns at a time one was the Head and Shoulder pattern another one was the Cup & Handle formation.
Cup & Handle Pattern A Bullish Reversal Pattern:
This Cup & Handle was started on 24th October 2019 and after forming the body of the cup the formation of handle was started in the month of Feb 2020. The resistance of the cup was at $10350 and it was expected that once the priceline will break out the resistance of the handle it will also break out the resistance of the cup as well. Up til 5th of March the price line retraced upto the golden ratio of 0.618 Fibonacci level and I was expecting that if this golden ratio will be not broken down then there are chances that the price actio can take the bullish divergence from this level and soon it will break out the resistance of the cup as well. But today after the strong bearish move we can examine that the priceline of Bitcoin has retraced more than 100% and the cup and handle pattern is now invalidated.
Head & Shoulder A Bearish Reversal Signal:
on the other side a bearish reversal pattern was being formed on 4 Day chart and that was Head & Shoulder pattern. It was started on 18th of December 2019 and completed on 7th March 2020. 8th of March was the decision making day for the Head and Shoulder pattern because on that day a strong bearish read candlestick was appeared and we received a bear cross by the stochastic and the moving average convergence divergence (MACD) also turned strong bearish from weak bearish and the price line crossed down the neckline of Head & Shoulder pattern and today the Bitcoin has hit at $5713 that is the recent lowest price by the price action of BTC as per Bitstamp exchange.
Support and Resistance Levels:
In my previous articles we have examined that after breaking out every resistance level the price line of Bitcoin was retesting the previous resistance level as support and moving up. When the Bitcoin broke out the $9819 resistance then it was expected that the price action of BTC will retest this resistance as a support and after the successful retesting the price action was expected to move up to the next resistance level at $10,398. But unfortunately the price action has failed in retesting this resistance level as a support and moved back to the previous support at $8314. The leading cryptocurrency did not stop here and even moved more down to the next support level at $6550.
Long Term Downward Trend Line And Volume Profile:
In my previous article I have revealed that the price action of BTC has formed a new long-term trend line on weekly chart and we have so many touches at this trend line therefore this line cannot be ignored. After placing the volume profile on the complete priceline moving above this trend line we can examine that the point of control of this volume profile if at $10,300. the POC always works as centre of gravity as it always pulls the price action towards itself and we can witness that the price action is moving around the point of control level, whenever the price action moves upward or downwards it always moves back to the POC. Guys the Bitcoin needs to break out this POC level as soon as possible cause if we will have few more touches around this POC level then another trend line will be formed above the priceline and in that case a down channel will be formed. And after appearing this down channel it will be difficult for the leading cryptocurrency to break out the resistance of this down channel. And as we have discussed in my previous article that in order to have a break out from this POC level we need buying volume with the continuity as we had from Feb 2019 up to June 2019 but unfortunately sofar we are not having as that much powerful buying volume. Even now we can see that the volume oscillator is triggered with the value of more than 8 level on weekly chart in favour of bears. And value of volume oscillator at 8 level is very strong on weekly chart.
This time I am not expecting that the price action will hit at the support of this downtrend line because the volume profile of this complete trend line is showing very low interest of the traders below 7500 dollars therefore the price action can move up at any time or can move sideways at this level unless the traders interest gets develop below this level.
But if the traders interest will be developed below $7,500 level then there is possibility that the price action of BTC will move more down to hit the trend line support.
Simple Moving Averages:
On weekly chart the price line is above very strong support of 100 in 200 simple moving averages. At this time the price action is hitting at the support of 100 moving average and likely to hit at the support of 200 SMA as well. These both moving averages are very strong support for the price action of Bitcoin since December 2015 as both moving averages were not broken down upto November 2018. And that was only 100 simple moving average that was broken on November 2018 the 200 moving average is not broken down so far. After when the price action broke down the support of 100 SMA it droped down to the 200 simple moving average support and consolidated there and took a very powerful bullish divergence and produced more than 300% profit.
Now I would like to share with you a very important move of priceline of leading cryptocurrency that can lead the price action to the highest price ever in the history of Bitcoin.
If we see the ichimoku cloud on weekly chart then back in 2014 in the month of May when the cloud was turned bullish the price action crossed down the cloud and after crossing down the cloud the priceline moved up again and hit at the resistance of the cloud and failed to cross up the cloud and dropped down again then cloud and turned bearish and for long time period the price action of Bitcoin moved sideways and after consolidation the priceline again took bullish divergence and produced more than 5000% huge profit.
Now in current time period we can see the king of all cryptocurrencies is likely to take the same move again. The price line has crossed down the cloud when the cloud turned bullish and in the month of February 2020 the price action has hit the resistance of the cloud but has failed to cross up the cloud and now dropped down again. Now the ichimoku cloud is turned bearish again. Now we can see a long term and short term sideways move at this level and after consolidation the price action may take the same move and cross up the cloud for a powerful bullish rally.
Harmonic Moves On Long Term Monthly Chart:
Now I would like to share with you the most powerful signal and pattern which is appeared on the very long term monthly chart and that is very big bullish harmonic pattern formed by the price action of Bitcoin. But before taking you to the current harmonic move I would like to show you the previous harmonic move of BTC on long-term monthly chart. Below is the chart that I published on April 2019 on this post you can see after hitting the highest price ever in the history of Bitcoin the priceline dropped at0.786 Fibonacci level. The price action had a strong support of 50 simple moving average and on monthly chart 50 simple moving average is considered very strong support. With this signal I used some other indicators and signals and based on my study and analyses I predicted that the price action has confirmed that it is going to form a complete Gartley pattern soon. Then we have witnessed that the priceline moved in the same way as I predicted and formed a complete Gartley.
Now we can see that the price action of Bitcoin has completed the formation of another Gartley pattern on month. The initial leg was started on December 2018 and has ended on January 2019 then we can see that the price action has a retraced up to 0.786 Fibonacci level on December 2019. Then the price action projected between 0.382 0.886 Fibonacci projection of A to B leg and completed the C leg on Feb 2020. Now the price action was suppose to take another drop to retrace between the Fibonacci level from 0.618 to 0.786 and after today's drop the price action has entered in the potential reversal zone of the bullish Gartle pattern and has completed the final leg. Now from here the leading cryptocurrency can take the bullish divergence at any time from the potential reversal zone and suppose to move in the projection area of A to D leg from 0.382 to 0.786 Fibonacci.
This bullish divergence can help the price line of Bitcoin cross up the ichimoku cloud on weekly chart and Bitcoin can repeat the same powerful bullish move as it has taken from 2016 to 2017 and achieved highest price.
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