A Harmonic Push Can Lead The Bitcoin To Hit The Next Resistance
The price action of leading cryptocurrency the Bitcoin has found a parallel channel and moving within this channel.
The resistance of channel is at $7772.71 and the support is at $6550.00.
The formation of the channel was started since Nov 25 2019 and sofar the priceline is not able to breakout the resistance or breakdown the support, this time after hitting the support the price action moved up and went close to the resistance but did not hit the resistance this time so we can assume that this time hitting at the resistance is due.
This was the Bollinger band’s upper bands which was the hurdle for price action and did not let the pricline to hit the resistance so we can expect the price action may hit the lower band of Bollinger bands which is currently at $6880 and then it will be bounced up again without hitting the support and may attempt to have the breakout from the channel and the chances of breakout are more than the breakdown lets have some more details then it will become more easier to understand.
Indicators and Oscillators:
Relative Strength Index (RSI) was oversold up till 17 Dec having oversold value 25.09 and now bullish.
Moving average convergence divergence (MACD) is weak bullish.
And if we see the Directional movement the +DI has crossed up -DI but the ADX of directional movement is moving down which is a good sign coz when it was up it was assigned to the bearish singal –DI and it is expected that next time it will be moved up for +DI.
Moving Averages:
If we see the simple moving averages with time period of 25 50 100 and 200 the we have the same position as we had in Dec 2018 the order of moving averages was as:
25MA was below all then we had 50MA then 100MA and then 200 simple moving average was above all and the alligator’s mouth was closed then on 11th Jan 2019 the 25 SMA started moving up and the we have seen in May 2019 a complete alligator mouth was opened which was formed with 25MA , 50MA and 100 and 200 simple moving averages and this alligator mouth lifted the price action upto $13880.
This time the moving averages are likely to make the same move and 25SMA is trying to cross down the price action if this moving average will be able to cross down the priceline then it will be 1st successful step toward the formation opened alligator’s mouth and then a strong bull run can be observed.
The Harmonic Move:
Now the price action has also completely formed bullish Crab pattern and sofar the bullish divergence from the potential reversal zone of this pattern is due if the price action takes bullish divergence then it will must enter the 0.382 to 0.786 Fibonacci projection of A to D leg and this bullish divergence will lead to break out from the channel which we have seen earlier in starting of the article but once the price action will be able to cross up the 0.786 Fibonacci projection of A to D leg then the price action may hit the next resistance level at $12325 which was formed in Jun 2019.
Regards,
Atif Akbar (moon333)
The resistance of channel is at $7772.71 and the support is at $6550.00.
The formation of the channel was started since Nov 25 2019 and sofar the priceline is not able to breakout the resistance or breakdown the support, this time after hitting the support the price action moved up and went close to the resistance but did not hit the resistance this time so we can assume that this time hitting at the resistance is due.
This was the Bollinger band’s upper bands which was the hurdle for price action and did not let the pricline to hit the resistance so we can expect the price action may hit the lower band of Bollinger bands which is currently at $6880 and then it will be bounced up again without hitting the support and may attempt to have the breakout from the channel and the chances of breakout are more than the breakdown lets have some more details then it will become more easier to understand.
Indicators and Oscillators:
Relative Strength Index (RSI) was oversold up till 17 Dec having oversold value 25.09 and now bullish.
Moving average convergence divergence (MACD) is weak bullish.
And if we see the Directional movement the +DI has crossed up -DI but the ADX of directional movement is moving down which is a good sign coz when it was up it was assigned to the bearish singal –DI and it is expected that next time it will be moved up for +DI.
Moving Averages:
If we see the simple moving averages with time period of 25 50 100 and 200 the we have the same position as we had in Dec 2018 the order of moving averages was as:
25MA was below all then we had 50MA then 100MA and then 200 simple moving average was above all and the alligator’s mouth was closed then on 11th Jan 2019 the 25 SMA started moving up and the we have seen in May 2019 a complete alligator mouth was opened which was formed with 25MA , 50MA and 100 and 200 simple moving averages and this alligator mouth lifted the price action upto $13880.
This time the moving averages are likely to make the same move and 25SMA is trying to cross down the price action if this moving average will be able to cross down the priceline then it will be 1st successful step toward the formation opened alligator’s mouth and then a strong bull run can be observed.
The Harmonic Move:
Now the price action has also completely formed bullish Crab pattern and sofar the bullish divergence from the potential reversal zone of this pattern is due if the price action takes bullish divergence then it will must enter the 0.382 to 0.786 Fibonacci projection of A to D leg and this bullish divergence will lead to break out from the channel which we have seen earlier in starting of the article but once the price action will be able to cross up the 0.786 Fibonacci projection of A to D leg then the price action may hit the next resistance level at $12325 which was formed in Jun 2019.
Regards,
Atif Akbar (moon333)
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