Woow !!! Bitcoin Breaking Out $10K Resistance | The Bullish Signals That No One Is Noticing
Woow !!! Bitcoin Breaking Out $10K Resistance | The Bullish Signals That No One Is Noticing

By moon333 | moon333 | 2 Jun 2020


Hi friends hope you are well and welcome to the new update on Bitcoin. The BTC has spiked more than $10400 and in today’s post we will try to understand how the price action of Bitcoin can behave in coming days. For this purpose we will watch different chart patterns,  moving averages and the different indicators as well.

 

The Bitcoin is crossing up a crucial reversal zone of BAT pattern:

In my previous posts we have seen since the price action of Bitcoin formed a bearish BAT pattern on short term 4 hour chart it was not able to cross up the potential reversal zone of this pattern. Whenever the price action tried to cross up this PRZ level it was getting bounced back to the bearish trend. Now finally the price action has almost crossed up this potential reversal zone of BAT.

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Movement towards resistance of channel:

On daily chart the price of leading cryptocurrency is moving within an up channel. After getting bounced from the support of this channel the price action started movement towards resistance of this channel on 26th May 2020. During this move the priceline of BTC also has crossed up 25 simple moving average. If we observe the position of the simple moving averages with the time period of 25, 50, 100, and 200 then it is very positive. As we can see the smallest moving average 25 is above all other moving averages then we have 50 then 200 and the 100 SMA is below all other simple moving averages. Now we need the 100 simple moving average the cross up the 200 SMA then a complete opened alligator mouth will be formed by these SMAs as it was formed back in June 2019 when the price action was lifted up by this alligator’s mouth up to $13800.

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You can also watch the below video for better understanding

Exponential moving averages has finally provided firm support:

Since the price action of Bitcoin has crossed up the exponential moving averages with the time period of 10 and 21 and the exponential moving average 10 has cross the up the EMA 21 the Bitcoin is using these EMAs as support very well. Now this time again since 20th May the price action was using these two EMAs as support and was likely to break down and the EMA 10 went very close to EMA 21 but finally the price action moved up and the both EMAs again lifted the price line of Bitcoin and provided a firm support as they are providing since after 17th April 2020.

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Another bull flag is expected:

The leading cryptocurrency is forming different bull flags on daily chart with continuity. This time since the first week of May the price action was moving almost sideways within current bull flag and it was expected that it will form a new bull flag here and will move up soon to form the next bull flag. Now finally the price action has left this flag and moving up and is likely to form the next bull flag soon.

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Oscillators and momentum:

In my previous articles I have been telling you that if the price action moves sideways but the RSI  moves upwards or downwards then finally the price action follows the move of RSI unless the RSI does not change its trend. This time we have seen that the RSI was in downtrend and the price action was moving almost sideways but finally the relative strength index has broken out the down trend and moving towards over bought zone. The Stochastic has already given bull cross from almost oversold zone and it is still very strong bullish and if we watch the momentum indicator then it is showing that momentum has been changed to bullish as the first green bullish bar is appeared.

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10K resistance and volume:

At this time the price action is making another attempt to break the $10,000 resistance level. But if we watch the volume then it is less than the volume when it was making the previous attempts for breakout, moreover the volume oscillator is also in negative zone. But while Bitcoin was making the previous attempts for breaking out the volume oscillator was up so indications by these volume based indicators are bit critical. However if we watch the directional movement indicator then positive directional indicator has crossed up the negative directional indicator and the ADX is also moving up that is a very strong bullish single on daily chart.

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Bitcoin is ignoring the bearish patterns with continuity:

On the daily chart we can also notice that the world’s leading cryptocurrency is breaking out the different bearish patterns with continuity. Like currently the Bitcoin formed a rising wedge pattern that is considered as bearish pattern among the traders community. But the Bitcoin is breaking out the resistance of this rising wedge rather to breakdown the support. Before this we have already seen that the Bitcoin formed a rising wedge pattern in April 2020 and rather to breakdown the support the BTC broke out the resistance. So that is another very strong bullish indication by the Bitcoin that it is ignoring the different bearish patterns with the continuity.

Current rising wedge:

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Previous rising wedge:

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Multi years based symmetrical triangle and moving averages:

Now if we switch to the weekly chart then we can see that the price action of Bitcoin has formed a very big multi years based symmetrical triangle. And the resistance of this triangle has become a very strong rejection line for the Bitcoin. Every time when the price action tried to break out resistance it has been rejected and move down. This time the price action of BTC is again trying to break out the resistance of this symmetrical triangle. This time if we watch the order of the simple moving averages then almost a complete opened alligator mouth is formed on this weekly chart. The only move that is due is the 25 simple moving average should cross up the 50 simple moving average as we had such order before 2017 when a complete opened alligator mouth was formed by these simple moving averages. And it lifted the price action to the highest price ever in the history of the BTC that was around $20K. However if the priceline will be rejected from the resistance of this big symmetrical triangle then Bitcoin can re-test the previous support of 50 simple moving average on weekly chart and at this time it is at $8800.

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Click here to create free account on tradingview to watch and play the chart on realtime

 

The Gartley pattern is doing its job well:

At the end of this article I would like to recall the big bullish Gartley pattern that has been formed on the monthly chart that I have been posting since March 2020. I was expecting that when the price action will take the bullish divergence from the potential reversal zone of this Gartley then we will see the sequence of the bullish candlesticks on the monthly chart. And now the second powerful bullish candlestick is appeared if such bullish trend on the monthly chart will be continued then and soon we will watch the break out from the multi years based symmetrical triangle as well.

Bullish Gartley before execution:

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Bullish Gartley after execution:

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Click here to visit this old article on tradingveiw

 

Conclusion:

Few days back different patterns and indicators were giving bearish signals. But on long term the Bitcoin was turning bullish. Now on short term almost all the indicators are turning bullish and on long-term BTC is turned more strong bullish.


moon333
moon333

Hi, My name is Atif Akbar and I am trading charts author of all kind of assets


moon333
moon333

Hi my name is Atif Akbar and I am one of the top 3 authors of cryptocurrency trading charts as per tradingveiw I publish there with my username moon333 to verify you can visit: https://www.tradingview.com/markets/cryptocurrencies/ideas/ I also publish the charts of different other assets like forex, commodities, CFDs Stocks e.t.c. Here you will find perfect predictions on different trading assets.

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