Hi friends, hope you are well and welcome to the new update on Bitcoin (BTC).
The harmonic move is invalidated:
since after the powerful bull run the price action of the leading cryptocurrency dropped at $30,000, it was forming different harmonic patterns . Therefore, this time we were expecting that the priceline of Bitcoin will I again form another harmonic move.
Rising wedge:
But the price action of Bitcoin is reversed bullish and it has confirmed the support. There was also a resistance formed above the price action therefore a complete rising wedge pattern has been formed. Now the price action is moving in this rising wedge.
Falling wedge:
If we connect all the wicks of the candlesticks from the support and resistance after 19th May 2021, then the price action has formed a bigger falling wedge pattern. Yesterday on a daily time frame the price action was likely to break out but it is again rejected by the resistance of this falling wedge. The falling wedge is considered a bullish reversal pattern among the trader’s community. Therefore, there are strong chances that the price action of the king of all cryptocurrencies will be reversible from this pattern. In case of a breakout from this falling wedge, the next target can be $41K.
A strong support zone:
On the long weekly time frame, it can be easily observed that the price action of Bitcoin has found a support zone starting from $31000 and ends up to $28800. There is also a 50 simple moving average support on this weekly time frame chart and the price action is accumulating above these two supports. So far there is not a single candlestick that has been closed below $31K even on the daily time frame chart.
Conclusion:
Even though the price action of Bitcoin is likely to be failed in breaking out the resistance of a big falling wedge pattern. And there is also a formation of the rising wedge pattern which is considered as a bearish reversal among the trader’s community. The rising wedge is comparatively smaller than the falling wedge. Therefore there are more chances for the breakout rather than break down.
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