Bitcoin TA Update (BTC/USD): BTC About to turn into a mad Bull, The Moment of truth is here.
Hi Friends, welcome to this TA update of Bitcoin,
If you follow my posts you must already know that BTC was expected to halt at some points before forming the right shoulder of Bullish inverse head and shoulders pattern, we can see that BTC was stopped for brief timings before completing the pattern. First it produced some pullback due to not forming a higher high on MACD in respect to higher high on chart.
But after that halt it completed the right shoulder however it was again pulled down below the breakout point, but you can see that BTC has again moved above the breakout point and now testing that level again in order to define it as resistance. If this time t succeeds then we have a clear indication that BTC has breached the pattern and a rally towards the target of that pattern will ensue.
You can see that the target calculated from the shape goes to suggest a target around $17,000 and we can see that 23.8% retrace is near that target so I will put 23.8% retrace as a potential target for that pattern.
However you can see that there is still some very strong resistance @ 50% retrace, which has historically proven to be one of the strongest after BTC rally. But there are strong supports below in EMA50 AND 200 below BTC for providing bounce back once BTC gets rejected at that level, I am only expecting BTC to hold for some time at that level before going completely mad. Bulls will certainly need to strike with some power to break it down. Let’s hope the charge developed by this inverse h&s pattern proves to be enough in breaking that boundary wall of tavern.
So people keep a watch around $12700 at heavy resistance but there looks to be no stopping before that once we confirm the breakout point as resistance.
That will be all for now, I will keep you guys Posted in the as the chart develops further till then watch out the behavior of BTC at the described levels before betting long.
Till then Goodbye and Best of Luck to You People.