Hi friends, hope you are well and welcome to the new update on Bitcoin (BTC).
The harmonic move is getting invalidated.
The price action of Bitcoin is forming the different bullish harmonic patterns on the daily time frame chat. It was expected that the priceline will again form another bullish harmonic Shark. But the price action is reversed bullish found support. There is already a resistance defined above the support. Therefore now the price action of Bitcoin is going for the rising wedge pattern rather than the bullish Shark. However, if the priceline moves down without touching the resistance of the wedge the chances for the bullish Shark formation will remain, and in that situation, the potential reversal zone can be from $29568 to $27934.
Strong support zone.
In worst-case scenario, if the price action will be moved down to form the final leg of the harmonic bullish Shark move, then on the weekly time frame there is less possibility that it will be closed below $31K. Because there is very strong support from $31000 $28800 and so far the price action is not able to close below $31K. There is also very good support of the 50 simple moving average on the weekly time frame chart.
The indicators are signaling the exhaustion of bears.
Now I would like to show you some indicators signaling the extreme exhaustion of the bears. First, if we take a look at the Stochastic RSI on the weekly time frame chart, then it is moving very close to the zero level and it’s been 17 weeks since the stochastic is moving in the oversold zone. And this is the longest time period for the stochastic RSI oscillator moving in this area for such a long time period.
On the same weekly time frame chart, the price action of BTC is also at the support of lower bands of the Bollinger bands and if we take a look at the recent history of the Bitcoin, then whenever it is hitting the lower bands of the Bollinger bands, it is starting the rally towards the upside. Now if we take a look at their moving average convergence divergence indicator ( MACD ), then it is also showing the signs of exhaustion because it is turning from strong bearish to weak bearish which also a bullish sign in the long term.
The stochastic RSI of Bitcoin is moving in the oversold zone for the longest time period in the history of the leading cryptocurrency. Other indicators are also signaling the exhaustion of the bears. Therefore, at any time a bullish reversal move towards the upside is possible. However until the price action won’t hit the resistance of the rising wedge, the possibility of another bullish Shark formation is still there.
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