After Breaking Down The Channel Support The Bitcoin Is Trying To Re-Enter In Channel
Hello friends hope you are well and welcome to the new update on Bitcoin. As yesterday I told you in my previous video that the Bitcoin is completing the final leg of bullish BAT pattern and it can enter in the potential reversal zone that start from the $9,000 $8800. Now the price action has completed the final legs and entered in PRZ level. Now let's have a look at the price action of the BTC to have more analysis to understand what the price action can do next.
Sell of by Bitcoin whales:
First of all I would like to share below story with you that is shared by coinelegraph in which they are telling us that basic reason for bitcoin price drop below $8.9K was the sell off by whales at major exchanges.
https://cointelegraph.com/news/bitcoin-price-drop-to-89k-caused-by-whales-selling-at-major-exchanges
By the way guys the cointelegraph has also shared my series of videos on Ethereum. If you are interested to trade Ehereum then it will be really very useful for you below is the link:
https://www.cointelegraph.com.au/author/fc2614c2c37c430bd1cb25438f5843f7/
You can also watch the below video for better understanding
Bullish BAT has been completed:
As in my previous post I told you that on daily chart the price action is forming harmonic moves with consistency and continuity. This time the price action was forming the final leg of bullish BAT. The potential reversal zone of this bullish BAt starts from $9,015 up to $8840. And finally the price action reached up to $8,900 and completed this final leg. Now there are chances that the price action will start an upward move from here.
Price action is retesting the previous resistance:
After being rejected by the $10,000 resistance level the priceline of the leading cryptocurrency has broken down the $9500 strong support. Now at this time the price action is re-testing the previous support as resistance. If the price action will be able to break out this resistance again then it will reach the $10,000 to make another attempt to breakout this level otherwise the price action may reach upto $8800 support level.
25 SMA and channel support has been broken down:
The price action of Bitcoin was moving within an up channe since after mid of March 2020. This Channel was the basic market structure for Bitcoin on short term and mid-term. The priceline of BTC was also above 25, 50, 100 and 200 simple moving average. But as the moon phase indicator was giving bearish signal because the new dark moon was appeared below the support at distance. Therefore the price action followed this bearish signal and broke down the channel’s support and the 25 simple moving average support as well. At this time the price action is retesting the previous support of 25 SMA and channel support as resistance. If the price action will not able to break out these previous supports as resistance we may see another drop.
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Price action is struggling at the support of pennant:
on daily chart after formation of rising wedge pattern the price action also formed another pennant. As in previous posts I predict that the rising wedge will not be broken down and the price action will break out the resistance. The basic reason for this prediction was that the RSI was completely in uptrennd. Whenever the RSI moves in up or down trend the price action follows this trend. During the movement in current pennant the price action was in uptrend but the RSI was in downtrend. Therefore finally the priceline of BTC followed the signals of RSI and tried to break down the support of this pennant. However that support is not broken down so far. At this time the price action is struggling at the support of this pennant and the Stochastic has also given bull cross signal as well. But the volume is not as that much strong as required for the breakout from the resistance of the pennant. And if we see the volume oscillator then it is also in negative territory that is clear signal that the bull are weak at this time.
Conclusion:
At this time the priceline of Bitcoin is going through a make or break situation. The BTC needs to re-enter in the channel as soon as possible otherwise we may watch another bearish rally.
