In my previous article we have seen that after hitting the highest price of 2019 at $13880 the price action has formed a down channel.
And I was expecting that this time the price action may have a breakout from the resistance of this channel and now finally Bitcoin has broken out the resistance of this channel:
On week chart the moving average convergence divergence (MACD) is still turning bullish so far it is turned weak bearish from strong bearish and soon we can see a strong bullish signal by MACD.
Stochastic has already given us the bull cross from the oversold zone and Chop zone is also turned weak bullish from weak bearish:
On day chart the simple moving averages with time period of 25, 50, 100 and 200 are likely to form an alligators's opened mouth soon which will produce a very powerful bullish divergence like it happened in May 2019.
Now the price action may attempt to hit the next resistance at $9586 which is in my point of view is not a strong resistance but one this resistance will be broken out then we have a very strong resistance at $12325 and breaking out from this resistance level can lead the price action of BTC to hit the final and key level resistance at $17324 and in case of breaking out from this resistance level we can see a highest price in the history of Bitcoin.
What should be stop loss?
If the price action won't be able to breakout the resistance at $9586 level then it can retest the resistance of previous channel as support but for me I will use the previous recent support inside channel at $7772 as my stop loss.
Atif Akbar (moon333)