Hey friends hope you are well, and welcome to the new update on Bitcoin.
The SMAs and alligator’s mouth formation:
From daily to long-term charts, the price action of BTC is showing no chance for crash or long term-correction rally so far. On daily chart the priceline is moving above 25, 50, 100, and , 200 simple moving averages and using 25 SMA as support before next rally. The all four SMAs have formed an alligator’s opened mouth, unless this mouth will be not closed the long-term rally will be continued.
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The difference between 2017 and current rally:
The major difference between the previous rally of 2017 and the current one is the Ichimoku cloud on long-term weekly chart. In 2017 rally it was not as that much strong bullish as this time. Therefore while in correction rally previously it was easily broken down, but this time if the correction rally will be started then this cloud will be difficult to break down.
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A big Butterfly move can lead priceline to $30K
Now if we switch to the monthly chart, then the priceline of the leading cryptocurrency is completing final leg of bearish butterfly. For the continuation of this pattern we needed a closing above $17200 in previous monthly chart and the previous month’s candlestick is already closed above $19000 levels. Now we can expect that this final leg will be completed. As per Fibonacci sequence the potential reversal zone is as below:
Potential reversal zone: $24132 to $29892
It means that the price action can move upto almost $30K then we can expect a log-term correcton rally between 0.382 to 0.786 Fibonacci levels that can be $20K to $8.5K.
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Conclusion:
After all confirmations, we can expect that in near future there can be some small or mid-term corrections but long-term correction can be started after $24K.
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