Hi friends hope you are well and welcome to the new update on Bitcoin. Previously we have seen that the price action of Bitcoin was completing the final leg of the bullish Cypher pattern and now finally the price action has geared up from the potential reversal zone of this pattern as predicted.
Before execution:
After execution:
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Wedge pattern and different support and resistance levels:
The priceline of BTC was also at the support of the wedge pattern on the daily chart. After taking bullish divergence the priceline is also likely to move up from the support of wedge pattern.
The Bitcoin has the resistance of the wedge at $10,000 but before the resistance of this pattern, we have another price level resistance that is at $9,500.
The SMAs on the daily chart:
Now if you watch the different simple moving averages on the daily chart with the time period of 25 50 100 and 200 then priceline is at the support of 25 simple moving average. At this time the priceline is trying to break out the 50 simple moving average. As soon the price action will cross up the 50 simple moving average the 25 simple moving average will also follow the price action and cross up the 50 SMA as well. And for the people who don't know, I would like to tell them that whenever the smaller time period moving average crosses up the bigger time period moving average then an upward rally can be expected.
The ichimoku cloud gave bullish signal 3rd time in the history of BTC:
Now if we place the Ichimoku cloud on the weekly chart. Then we can find a very significant long term bullish signal. A few days back the priceline was retesting the cloud as support and now it is likely to be geared up. The conversion line has formed the bull cross with the baseline just below the cloud and this is happening for the 3rd time in the history of the Bitcoin. Before this, we receive this bull cross in April 2019 when the price line produced more than 300% rally. And before that, we can see this bull cross between conversion and baseline in 2016 and after that, the price action produced more than 3,000% bullish rally.
The big multi-years based symmetrical triangle:
Now would like to draw your attention towards a very big symmetrical multi-years based triangle. The price action is at the resistance of this pattern a few days back after hitting the resistance the priceline was at the support of 50 simple moving average. Now it is again moved up and hitting the resistance for the breakout. Here I am also expecting the bull cross between 25 simple moving average and the 50 SMA. Once the 25 simple moving average will be moved up then a complete opened alligator mouth by the simple moving averages will be formed the same as it was formed back in 2016 when the pipeline produced more than 3000% rally.
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Conclusion:
At this time the price line of Bitcoin is trying to break out a very powerful resistance that has been working as a powerful rejection line since 2017. Therefore if the price line will be filled in breaking out this resistance then we can also expect a major drop. Therefore we should set the 8800 dollar price level as our stop loss that is previous support.
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