Hey, friends hope you are well and welcome to the new update on Bitcoin. As in my previous articles, I have been showing you the different harmonic moves on the daily chart by the price action of BTC. Lastly, the price action formed a bullish Cypher pattern and as per the Fibonacci sequence of this pattern, I predicted that the price action will move up from the potential reversal zone of this bullish Cypher. And Finally as per prediction the price action moved up with powerful bullish divergence and so far it has spiked beyond $12,000.
The resistance of bit symmetrical triangle has been broken out:
We have been watching that the price action of BTC was moving in a big multi-years based symmetrical triangle that was started in 2017. And so far the resistance of the symmetrical triangle was working as a strong rejection line for the price line of Bitcoin. Whenever the pipeline was reaching at this rejection line it was moving down at the support after rejection.
Now finally the price action has broken out the resistance of the symmetrical triangle. At this time it is moving above the rejection line. As we have already discussed that this resistance of the symmetrical triangle was the strongest resistance since 2017. Therefore there are strong chances that now the price action will move down to re-test the previous resistance line of the symmetrical triangle as support that is almost at $8000.
The strongest signal I am waiting for:
Now I want to discuss with you the most powerful bullish signal that I am waiting for. And that is the complete formation of an opened alligator mouth by the simple moving averages with the time period of 25, 50, 100, and 200. First of all, I want to take you back from 2013 to 2015. And here we can observe that the price action found strong resistance and after been rejected by this resistance several times the price action of Bitcoin also found the support and formed a falling wedge pattern.
Finally, the price action bounced from the support of this wedge pattern and the 200 simple moving average as well and broke out the resistance of this pattern. After breaking out we can also observe that 25 simple moving average moved about all then we had the 50 simple moving average then 100 and 200 simple moving average moved below all and a complete opened alligator mouth by the simple moving averages was formed and priceline of Bitcoin produced more than 3000% powerful rally.
Now if we move back to the current situation then we have the 200 simple moving average below all then 100 simple moving average is already above 200 SMA. Now only bull cross between 25 and 50 simple moving averages is due. Once the 25 simple moving average will cross up that 50 simple moving average and moves above all the other SMAs. Then a complete opened alligator mouth will be formed and we can witness a very powerful rally to the upside in the long-term as we have witnessed back from 2013 to 2017.
After this big breakout even though the price action of Bitcoin is likely to start a very long term rally to the upside. But there is a strong possibility that the price action will move down to re-test the previous resistance of the triangle as support before starting the next bullish rally. At the time of writing that resistance is at $8000.
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