Hi friends, hope you are well and welcome to the new update on Bitcoin (BTC).
The supports are broken down:
The price action of Bitcoin formed a big falling wedge pattern and within this falling wedge, the priceline also formed a smaller rising wedge pattern as well. The price action of the leading cryptocurrency was accumulated at the support of the smaller rising wedge pattern and at the same time it was trying to break out the resistance of the bigger falling wedge pattern as well.l Finally the candlesticks broke down the support of the rising wedge and also a price level support of $35500. The candlesticks are also closed below $35500 on a daily time frame and now there is a possibility that the price action will move down to test the support of the falling wedge which is approximately at $28800.
Key level support zone.
On the weekly time frame, it can be clearly observed that we have a very strong key level support zone which starts from $31000 and ends up to $28800. There is also a weekly 50 simple moving average support below the candlesticks at $31400. The stochastic RSI is oversold for a long time period and the Moving average convergence divergence indicator ( MACD ) has started turning bullish. Therefore, if the priceline will move down to test the support of falling wedge on the daily time frame then there is a strong possibility that it will be reversed bullish from this key level support zone of $31K to $28.8K.
Bullish harmonic BAT pattern:
If we take a closer look at the price action then it has fulfilled all the Fibonacci sequences of the harmonic bullish BAT pattern. And as per this pattern the buying and sell targets can be as below:
Buy between: $31531 to $30886
Sell between: $33068 to $35377
The maximum extent of potential reversal zone $30886 can be used as stop loss. As per the above targets, this BAT pattern has a profit possibility of up to 14.5%, and the loss possibility is 2.5%.
Conclusion:
On the daily time frame, the price action is turning bearish but on the weekly time frame we are receiving weak bullish signals and soon they can also be changed to strong bullish as well. There is also a harmonic pattern being formed on the daily time frame. The targets as per the harmonic patterns which have been shared above are for the day and short-term traders. However, it is also possible that once the priceline of the leading cryptocurrency will start moving up the potential reversal zone of this BAT pattern, then it will also start a big rally.
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