The Bitcoin may start a correction rally soon
Hi guys and gals, welcome to the new update on BTC.
The pricline reached pennant’s target:
In my previous post we have seen that on the 4-hr chart, the pricelne of the leading cryptocurrency was breaking out the pennant. And as per measurement from the tail of the pennant to the support and placing it at the tip of this pattern, the next move was expected up to $25500 at least. Finally, the pricelne of Bitcoin surged more than $25500 and even spiked beyond $28000.
The Bitcoin has broken out the resistance of H&S:
Before the above move the price action of the BTC formed a head and shoulder pattern and after getting bounced from the neckline now finally, it has broken out the resistance of this pattern, which was at $24200.
The BTC is likely to find a new fractal resistance:
On daily chart, the price action of Bitcoin has also broken out the bearish reversal fractal resistance. This resistance level was at $24200. And now likely to form another bearish reversal fractal, approximately at $27800. Sofar 4 candlesticks have appeared. Now if the next candlestick will be formed below the previous candlestick then this will be a perfect bearish reversal fractal setup of 5 candlesticks. Then a reversal up to the previous bearish reversal fractal at $24200 can be expected.
A big bearish Butterfly is a huge warning for correction:
On the long-term monthly chart the price action has already entered in the potential reversal zone of bearish Butterfly move. This potential reversal zone stats from $24132 and ends at $29892. Therefore, if the rally will be continued eventually it can be ended up to approximately 30K and a big correction can be started.
The weekly EMAs can be re-tested:
On the weekly chart, the priceline of Bitcoin at a very high distance from exponential moving averages 10 and 21. And these EMAs have not been re-tested as support since after Sep 2020. Therefore, if the priceline will start a correction rally then the exponential moving averaged 21 can be tested as support. The EMA 21 is at $16900 at the time of writing.
Conclusion:
All indicators, oscillators, and moving averages are strong bullish in the long term, but the Butterfly move is the biggest signal that is giving huge warning for a start of a correction. However, after this correction more powerful rally to the upside can be started.
The pricline reached pennant’s target:
In my previous post we have seen that on the 4-hr chart, the pricelne of the leading cryptocurrency was breaking out the pennant. And as per measurement from the tail of the pennant to the support and placing it at the tip of this pattern, the next move was expected up to $25500 at least. Finally, the pricelne of Bitcoin surged more than $25500 and even spiked beyond $28000.
The Bitcoin has broken out the resistance of H&S:
Before the above move the price action of the BTC formed a head and shoulder pattern and after getting bounced from the neckline now finally, it has broken out the resistance of this pattern, which was at $24200.
The BTC is likely to find a new fractal resistance:
On daily chart, the price action of Bitcoin has also broken out the bearish reversal fractal resistance. This resistance level was at $24200. And now likely to form another bearish reversal fractal, approximately at $27800. Sofar 4 candlesticks have appeared. Now if the next candlestick will be formed below the previous candlestick then this will be a perfect bearish reversal fractal setup of 5 candlesticks. Then a reversal up to the previous bearish reversal fractal at $24200 can be expected.
A big bearish Butterfly is a huge warning for correction:
On the long-term monthly chart the price action has already entered in the potential reversal zone of bearish Butterfly move. This potential reversal zone stats from $24132 and ends at $29892. Therefore, if the rally will be continued eventually it can be ended up to approximately 30K and a big correction can be started.
The weekly EMAs can be re-tested:
On the weekly chart, the priceline of Bitcoin at a very high distance from exponential moving averages 10 and 21. And these EMAs have not been re-tested as support since after Sep 2020. Therefore, if the priceline will start a correction rally then the exponential moving averaged 21 can be tested as support. The EMA 21 is at $16900 at the time of writing.
Conclusion:
All indicators, oscillators, and moving averages are strong bullish in the long term, but the Butterfly move is the biggest signal that is giving huge warning for a start of a correction. However, after this correction more powerful rally to the upside can be started.
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