Hey friends, hope you are well and welcome to the new update on Bitcoin (BTC).
Broke out the resistance of the previous triangle:
We can see that the price line has broken out the previous support of the triangle as a resistance, now we will see whether the price action will continue its move to the upside or it will be moved down from here.
The price line was moving very nicely between the resistance and the support of this triangle. Then the price line broke down the support that was a fake out, after the fake out, there was a very weak bearish candle stick, therefore eventually the price line moved to the upside. It can be observed that whenever the price lines moves close to the $30,000 support then the price action moves upwards which means we see a lot of buying order here.
Now the price line has broken this previous resistance of triangle and it is likely to retest the previous resistance as a support. Technically it can be an ideal situation to change the game completely from here because after this perfect retest, the price line can turn extremely bullish.
We have already seen that when we have this bearish candlestick, that has broken down the support, the price action also was forming a falling wedge pattern, that is considered as a bullish reversal pattern among the traders community. Now the price action has broken out the resistance of this falling wedge. Technically our next target can be the tail of this falling wedge that is approximately at $43,000
The volume:
We are also having nice volume on 4 hourly chart which is enough to change the trend on short-term timeframe chart from bearish to bullish.
Now to show you the power of bulls or the buying here I have placed a volume oscillator indicator which is a very useful indicator to watch the power of buying or sell volume.
On the daily time frame after 26th of May, now finally this volume oscillator has moved in the positive territory before that it was moving in a negative territory. Now there is a possibility that it will be triggered more and move up. However, if the oscillator will be not triggered but if we will have a follow-up of buying volume and the oscillator will be still in positive territory, then the trend can be chaged to bullish.
Ichimoku cloud:
We can see that the ichimoku cloud is still showing us a bullish cloud. The cloud has not been turned bearish so far, like it turned bearish after the bull run of 2017 and 2013 as well. So far we do not see any upcoming bearish trend from the ichimoku cloud, therefore on the long term we’ll be seeing bullish trend. However, we are bearish in short term.
Exponential moving averages:
The price action has also broken out the EMA 10 on daily time frame chart after a long time period. Now if the EMA 21 will be broken out then it can also lead the price action to break out the EMA 21 weekly as well.
Price level resistances:
However, on the daily timeframe chart, if you watch the price level resistances, then after $39500 we don’t have any significant resistance up to $50,000. Therefore it is very important to break out $39,500 resistance 1st.
Conclusion:
Even though, the price action of the leading cryptocurrency has broken out the resistance of the previous triangle. But in order to continue the bullish trend the price action of the Bitcoin needs to break out the price level resistance at $39500 and once it will be broken out then a new horizon to the bullish zone will be opened.
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