Previously we have seen that on the 12-hour chart, the price action of the leading cryptocurrency formed a bullish harmonic Shark pattern and the price action reversed bullish from the potential reversal zone of this pattern but could not continue the rally. After hitting the sell targets the candlesticks dropped down again. It was a good trade plan for the day traders. However, for the long-term holder, it was not good because eventually the price action is moved down.
After hitting the sell targets and dropped:
Making attempts to breakdown:
The price action of Bitcoin is moving in a falling wedge on a small-time period 4-hourly chart, and recently we have seen that the priceline has reached again at the support of this pattern and making several attempts to break down the support.
Key level support zone and bigger falling wedge:
On the daily time frame chart, the price action of BTC is moving at the resistance of a falling wedge pattern. This falling wedge is bigger than the previous one that we have discussed earlier. While the price action of Bitcoin is at the resistance, at the same time it is also reached the support key level support zone which starts from $31K and goes to $28.8K. On one side, it can be the right time to invest in Bitcoin , because it has again reached the key level support zone and from here if it will be turned bullish then it can break out the resistance of the wedge, and the next target can be up to $41K, in case of breaking out the resistance of this patter. On the other hand, it can be a bad investment as well if we will not take care of stop-loss, because if this key level support will be broken down then a long-term bearish trend can be started.
Bullish reversal BAT pattern flashed:
On the daily time frame chart, the price action has of BTC has completed the final leg of bullish BAT . For day traders the buy and sell targets can be as below:
Buy between: $31531 to $30886
Sell between: $33068 to $35377
The above targets are defined as per the Fibonacci calculations of the bullish BAT pattern. The maximum extent of potential reversal zone $30886 can be used as stop loss. As per the above targets, this trade has a profit possibility of up to 14.5%, and the loss possibility is 2.5%. I have already shared this pattern on 9th July, but the leg is now recently completed therefore, I am sharing it again.
Even though the price action of the king of all cryptocurrencies is at a very critical support zone . And at the same time, the formation of a harmonic bullish reversal pattern can be very helpful to change the situation from here. Because, if the price action will continue the rally towards the upside, after taking the bullish divergence from the potential reversal zone of this harmonic pattern , then it can also break out the resistance of the falling wedge.
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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.