Hi friends, hope you are well and welcome to the new update on Bitcoin.
Previously we have been following the triangle and the price action of the Bitcoin broke out the resistance of this pattern, but unfortunately, it was rejected by the price level resistance at $39500 and moved down.
Breaking down the wedge:
On the daily time frame, the price action of the Bitcoin formed the rising wedge pattern and broke down the support of this wedge. Then the priceline of the leading cryptocurrency also broke down the daily 25 SMA as well. And reached very close to the area where the volume profile is showing very little interest of the traders. The volume profile has been placed since after the price action recently rejected by $30K support up to the current candlestick.
The bullish harmonic moves:
The price action of the king of all cryptocurrencies is forming continuously different bullish harmonic moves. Most recently it formed a bullish Gartley pattern on 30th May 20201.
Click here to watch this old idea:
Then on 6th June, it formed a bullish Cypher as below:
Click here to watch this old idea at tradingview
Then currently on the 12-hour chart, the price action of Bitcoin has formed another bullish Cypher as below:
Click here to watch this current idea at Patreon:
Buy and sell targets:
Buy between: $34946 to $33210
Sell between: $36311 to $39592
The maximum extent of the potential reversal zone of $33210 can be used as a stop loss.
Possible profit and loss ratio:
As per the above targets, this trade has a big profit possibility of 19%, and the high loss possibility is 5%, however at this time the risk is low as the price action is already at the end of the buying zone.
The price action of Bitcoin is moving where the trader's interest to sell more bitcoins is very weak as we have already seen it by applying the volume profile indicator and the buying zone of the bullish Cypher is also in the area where we have the weak interest of the traders. Therefore from here, the price action can again move to the upside.
Note: Above idea is for educational purpose only. It is advised to diversify and strictly follow the stop loss, and don't get stuck with trade.
For more harmonic trading ideas you can join:
Link for Binance exchange, the best place to buy or sell Crypto: