KNCBTC anothe bullish reversal pattern is formed

2020년 6월 26일

Hi friends hope you are doing well and welcome to the new update on Kyber Network. The KNC has surged more than 930%. Therefore in today’s post we will try to have complete analysis how how the KNC surged and what the price action can do next.
A big butterfly move:
Last year in September 2019 I posted in article on tradingview. Where I revlealed that the price action of Kyber Network has completed the formation of bullish Butterfly and it can make up to 512% big move. And finally as per prediction the price action took a powerful bullish divergence and produced more than my Expectations and that is 930% very big move.

A descending triangle and bullish signals:
There was another bullish signal that the price action of KNC gave before taking this powerful bullish divergence. The price action of Kyber Network was moving in a descending triangle and in May 2020 it was moving in the area where the trader’s interest was very low as per volume profile indicator. I have also placed the moon phases indicator on this chart and you can see that the new dark moon was appeared exact at the support of this triangle and the new full moon was above the resistance of the triangle. That was a clear indication that it will be difficult for the priceline to break down the support and it will breakout the resistance. And finally the price action followed the signals and broke out the resistance of this triangle.


Bullish reversal signal after correction rally:
After first bullish move in the month of March 2020 the price action started a correction rally. During this correction rally the price action completed an other bullish reversal pattern on the weekly chart that was another clear signal that the price action will not stop here and soon it will make another powerful bullish move. And that pattern was a Cup & handle. The resistance of the Cup was at $10,000 and the handle of the cup retreced upto 0.382 Fibonacci retracement level and finally broke out the resistance of this cup.


Support and resistance levels:
Now if we switch to the 4 day chart then we can observe four major resistance and support levels. 0.00006500 sats, 0.00010000 sats, 0.00014000 sats and 0.00027500 sats. The price action formed a double bottom on 0.00006500 and broke out the next resistance of 0.00010000 sats and moved up to 0.00014000 sats resistance level. Now the price action is facing hard resistance at this level. If the priceline of Kyber network will be moved down then it can retest the previous resistance as support at 0.00010000 sats. The 0.00014000 sats is very important resistance for the priceline as if it will be broken out then there is no significant resistance from this level up to the next resistance level of 0.00027500. Therefore this 96% gap will be covered within a no period of time after breaking out the 0.00014000 sats resistance.


A bullish reversal harmonic pattern is formed:
While the price action is stuck at 0.00014000 sats resistance level it has formed a bullish Shark pattern on a very small time period 4 hour chart and entered in the potential reversal zone of this pattern. Even though this is not as that much big pattern that can give a powerful push to the price action to break out the next resistance however this bullish reversal pattern can be e helpful.


Conclusion:
If the next resistance level will be broken out then we can again see another very powerful bullish move. But if it will not broken out then the price action may start a bearish rally up to the previous support at 0.00010000 sats.