Bitcoin (BTC) Another Breakdown With A Possible Reversal
Hi dear friends, hope you are well and welcome to the new update on Bitcoin.
Brokedown the triangle:
On the small time frame 4-hourly chart, the price action of Bitcoin was moving in a descending triangle and it was moving very well between the resistance and support of this pattern. After reaching the tip of the triangle the priceline is rejected by the resistance and broke down the support of the triangle.
New falling wedge:
Even though the price action of the leading cryptocurrency has broken down the support of the descending triangle, however, there is another downtrend line support below the candlesticks and the priceline of BTC is not able to break down this new support so far. If we remove the support of the previous descending triangle and use the resistance of the same triangle with the new support, then it has formed a new falling wedge pattern on the 4-hour time frame. Which is a bullish reversal pattern. So far, the price line is moving at the support, if the price action will be reversed from here then it can make another attempt to break out the resistance of this new falling wedge pattern.
Big falling wedge and death cross:
On the daily timeframe chart, the price action of Bitcoin is still moving at the resistance of a big falling wedge pattern and trying to break out the resistance. We have more touches at the resistance than the support, and the more price and will try to break out the resistance the more there will be chances for the breakout. There is also a death cross formation above this big falling wedge pattern but the priceline is still moving sideways within the falling wedge. If the priceline will be able to break out the resistance of the falling wedge then there is a 50 simple moving average working as an additional resistance above the price action.
Harmonic bullish Shark move:
On the 12-hour time frame chart, the price action of Bitcoin has formed a big bullish Shark pattern. For day traders, the buying and sell targets of this Shark pattern can be as below:
Buy between: $32326 to $31792
Sell between: $32894 to $34060
As per the above targets, this trade has a profit possibility of up to 7%, and the loss possibility is 1.7%.
After breaking down the support of the triangle the formation of a falling wedge on the 4-hourly chart and the formation of a bullish Shark move on the 12-hour chart, can be the indications that price action can break out the resistance of the bigger falling wedge pattern which is formed on the daily time frame chart. In case of break out from this bigger falling wedge pattern, the next target can be $41000, which is the tail of this wedge pattern.
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