Hi friends, hope you are well and welcome to the new update on Bitcoin ( BTC ).
Cypher move:
On the 18th of June, I shared an idea in which I revealed that the price action of Bitcoin may complete the final leg of the bullish harmonic cypher pattern and it can drop more from here. The procession indeed dropped in the potential reversal zone but it behaved like a bullish shark and moved more down. However, reversed back and hit the sell zone.
After behaving like a bullish Shark:
Broke out the triangle:
On the daily time frame chart, the price action of BTC is out of the resistance of the triangle. As we have discussed earlier in my previous articles that after placing the volume profile indicator on the complete price action moving within this triangle we were having a clear indication that there is a weak interest of the traders close to the support and very strong interest of the traders even above the resistance of the triangle. The priceline of the leading cryptocurrency followed the signal of the volume profile and broke out the resistance and now it is moving up towards the point of control of the volume profile.
Low volume:
In order to confirm this breakout, we need a powerful volume. But if you take a look at the chart then after placing in the volume indicator it can be noticed that the volume is still low. And if we take a look at the volume oscillator to measure the power of buying volume then previously it was triggered with the value of 12 and 17. But recently it has dropped in the negative territory. Therefore the volume oscillator should be moved up to show that the bulls are in power and driving the price action.
Powerful buying signal 4th time appeared:
Now I would like to talk about the most powerful bullish signal that has been appeared on the weekly time frame chart. And that is the 50 simple moving average. It can be observed that in the previous week price action has already hit the 50 simple moving average on the weekly time frame chart. This is happening for the 4th time in the history of Bitcoin, that the priceline is testing the 50 simple moving average as support after breaking out this SMA. And every time when the price action of Bitcoin tests the 50 simple moving average it always starts the rally towards the upside from here. However, as it is the weekly time frame move. Therefore this move can take a little bit longer and we need the patience to start the next big move from here.
Conclusion:
In the mid and short term, so far the breakout is not confirmed unless we will not have the powerful buying volume. But in the long-term, we have received the powerful buying signal and that is the price action has reached the 50 simple moving average.
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