The Bitcoin has broken out the resistance of H&S:
Before the above move the price action of the BTC formed a head and shoulder pattern and after getting bounced from the neckline now finally, it has broken out the resistance of this pattern, which was at $24200.
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The BTC is likely to find a new fractal resistance:
On the daily chart, the price action of Bitcoin has also broken out the bearish reversal fractal resistance. This resistance level was at $24200. And now likely to form another bearish reversal fractal, approximately at $27800. Sofar 4 candlesticks have appeared. Now if the next candlestick will be formed below the previous candlestick then this will be a perfect bearish reversal fractal setup of 5 candlesticks. Then a reversal up to the previous bearish reversal fractal at $24200 can be expected.
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A big bearish Butterfly is a huge warning for correction:
On the long-term monthly chart, the price action has already entered the potential reversal zone of bearish Butterfly move. This potential reversal zone stats from $24132 and ends at $29892. Therefore, if the rally will be continued eventually it can be ended up to approximately $30K and a big correction can be started.
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The weekly EMAs can be re-tested:
On the weekly chart, the priceline of Bitcoin at a very high distance from exponential moving averages 10 and 21. And these EMAs have not been re-tested as support since after Sep 2020. Therefore, if the priceline will start a correction rally then the exponential moving averaged 21 can be tested as support. The EMA 21 is at $16900 at the time of writing.
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Conclusion:
All indicators, oscillators, and moving averages are strong bullish in the long term, but the Butterfly move is the biggest signal that is giving a huge warning for a start of the correction. However, after this correction more powerful rally to the upside can be started.
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