After Hitting Channel Support BTC Formed Another Bullish Crab
The Sell Oscillation Is Decreased Today:
The leading cryptocurrency is struggling to safe the support at $9819.92. Sofar we have seen that after breaking out every resistance the Bitcoin is retesting the previous resistance as support and after successful retesting the price action moves up to hit the next resistance level and the price correction moves by the King of all cryptocurrencies are being taken very beautifully and the Bitcoin is being retraced after breaking out every resistance and forming bull flags on daily chart.
1st the coin has resistance at $8314.77 and when the Bitcoin broke out this resistance after that the BTC moved down and retested this resistance as support and then moved up to the next resistance level at $9819.92 and broke out this next resistance as well.
Now the price action is retesting this previous resistance of $9819 as support for last 3 days and today will be 4th day. If we see the previous move then the price action retested the previous resistance of $8314.77 as support for 4 days.
Yesterday we have seen the longest bearish spike upto $9467.57 and almost half of the candle stick crossed down the support but sofar the priceline is not able to breakdown this support as no candle stick has been closed below this level so far.
And the volume oscillator on daily chart is still in negative with the value of -17% which shows that the bears don’t have much power to breakdown this support level.
Bitcoin Has Hit The Support Of An Up Channel:
Bitcoin is also moving within an up channel 18 Dec 2019 on daily chart and the zigzag movement of the price action is synchronized with the moving average convergence divergence (MACD) and Stochastic.
Whenever the priceline hits the support of the channel and MACD turns bullish and stochastic gives bull cross the price action embraces the signals and moves up to hit the resistance of channel.
Now this time the price action has again hit the support of this channel but the MACD and Stochastic are still strong bearish this is bit alarming because unless the stochastic doesn’t give bull cross from here and MACD doesn’t turn bullish or weak bearish we can’t confirm the upward move from here.
If the price action will move up from here to hit the resistance of channel then there are strong chances that the price action may hit the next resistance level at $10940 because the next resistance level is almost at the same level where the next resistance of this channel comes.
The Bear’s Leg Is Extended:
Upto 16 Feb 2020 the price action formed a bullish BAT harmonic pattern on 4hr chart and it was expected that the price action will take the bullish divergence from the potential reversal zone of this BAT pattern.
The New Bullish Harmonic Move:
But now the price action has little bit extended the C to D leg between 1.27 to 1.618 Fibonacci levels therefore now the pattern is shifted from BAT to bullish Crab the new pattern is as below:
After inertial leg (X to A) the A to B leg is retraced between 0.382 to 0.618 Fibonacci and then B to C leg is projected between 0.382 to 0.886 of A to B leg's Fibonacci projection and final (C to D) leg is retraced between 1.27 to 1.618 Fibonacci as perfectly required for bullish Crab pattern.
The maximum extent of this potential reversal zone was from $ 9492.81 to $ 9216.50 and the priceline moved down upto $9467.57 in this level and now the price action is moved up from this potential reversal zone as it was suppose to do.
So far the candles are entered in Fibonacci projection of A to D leg from 0.382 to 0.786 Fibonacci.
In simple words the Bitcoin entered in buying zone of this Crab pattern and moving up.
The Conclusion:
Even though the after hitting the potential reversal zone or buying zone of Crab pattern the BTC is moving up but still the assets is struggling and retesting the support unless it moves up $9819.92 again. I hope that as soon the MACD will be turned weak bearish from strong bearish the BTC will manage to save the support and move to next resistance level but if the indicators will be remained strong bearish then BTC may breakdown this support and retest the previous support at $8314.77.
Regards,
Atif Akbar (moon333)
The leading cryptocurrency is struggling to safe the support at $9819.92. Sofar we have seen that after breaking out every resistance the Bitcoin is retesting the previous resistance as support and after successful retesting the price action moves up to hit the next resistance level and the price correction moves by the King of all cryptocurrencies are being taken very beautifully and the Bitcoin is being retraced after breaking out every resistance and forming bull flags on daily chart.
1st the coin has resistance at $8314.77 and when the Bitcoin broke out this resistance after that the BTC moved down and retested this resistance as support and then moved up to the next resistance level at $9819.92 and broke out this next resistance as well.
Now the price action is retesting this previous resistance of $9819 as support for last 3 days and today will be 4th day. If we see the previous move then the price action retested the previous resistance of $8314.77 as support for 4 days.
Yesterday we have seen the longest bearish spike upto $9467.57 and almost half of the candle stick crossed down the support but sofar the priceline is not able to breakdown this support as no candle stick has been closed below this level so far.
And the volume oscillator on daily chart is still in negative with the value of -17% which shows that the bears don’t have much power to breakdown this support level.
Bitcoin Has Hit The Support Of An Up Channel:
Bitcoin is also moving within an up channel 18 Dec 2019 on daily chart and the zigzag movement of the price action is synchronized with the moving average convergence divergence (MACD) and Stochastic.
Whenever the priceline hits the support of the channel and MACD turns bullish and stochastic gives bull cross the price action embraces the signals and moves up to hit the resistance of channel.
Now this time the price action has again hit the support of this channel but the MACD and Stochastic are still strong bearish this is bit alarming because unless the stochastic doesn’t give bull cross from here and MACD doesn’t turn bullish or weak bearish we can’t confirm the upward move from here.
If the price action will move up from here to hit the resistance of channel then there are strong chances that the price action may hit the next resistance level at $10940 because the next resistance level is almost at the same level where the next resistance of this channel comes.
The Bear’s Leg Is Extended:
Upto 16 Feb 2020 the price action formed a bullish BAT harmonic pattern on 4hr chart and it was expected that the price action will take the bullish divergence from the potential reversal zone of this BAT pattern.
The New Bullish Harmonic Move:
But now the price action has little bit extended the C to D leg between 1.27 to 1.618 Fibonacci levels therefore now the pattern is shifted from BAT to bullish Crab the new pattern is as below:
After inertial leg (X to A) the A to B leg is retraced between 0.382 to 0.618 Fibonacci and then B to C leg is projected between 0.382 to 0.886 of A to B leg's Fibonacci projection and final (C to D) leg is retraced between 1.27 to 1.618 Fibonacci as perfectly required for bullish Crab pattern.
The maximum extent of this potential reversal zone was from $ 9492.81 to $ 9216.50 and the priceline moved down upto $9467.57 in this level and now the price action is moved up from this potential reversal zone as it was suppose to do.
So far the candles are entered in Fibonacci projection of A to D leg from 0.382 to 0.786 Fibonacci.
In simple words the Bitcoin entered in buying zone of this Crab pattern and moving up.
The Conclusion:
Even though the after hitting the potential reversal zone or buying zone of Crab pattern the BTC is moving up but still the assets is struggling and retesting the support unless it moves up $9819.92 again. I hope that as soon the MACD will be turned weak bearish from strong bearish the BTC will manage to save the support and move to next resistance level but if the indicators will be remained strong bearish then BTC may breakdown this support and retest the previous support at $8314.77.
Regards,
Atif Akbar (moon333)
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