Cryptocurrencies

BTC technical analysis

BTC seen from the temporality of 1W we can observe how the structure of candles has formed a bullish pattern known as bullish flag, a continuation pattern, therefore, we should have a next upward movement that could reach the upper supply zone located within the price range of 16239 – 19902, signaled within the above chart by the two red horizontal color, in the game of 5 impulse waves, this pattern would be completing us the 2 wave and would come the 3 impulse wave which is usually the longest and fastest impulse wave, we need the price to test us the high zone to later be able to find the break and go for the 30,000 or 60,000, could even reach higher, after the break of the ATH the price can move freely up and only following the action the price action we can determine the next distribution zone.

BTC seen from the temporality of 1D we can observe more closely the current movement of candles where we see how the price so far carries an excellent momentum movement after reaching the demand zone of fibonacci level 61, a level widely used to locate important levels of the trend, Currently the price could go back briefly to the range of 7280 – 7400 to take impulse again and go for the zone of offer in 1D that is located within the price range of 8478 – 8812, indicated within the graph by the two horizontal black color, we still can not confirm if the current impulse is 5 waves, however, if confirmed, we could see a reclaim above that level.

The graph above is added to show the current trend line that is holding the current price, we see how this diagonal has been tested previously as support and resistance, this level is strong and gives us a signal that we could have finished the correction within the bull flag.

In conclusion, BTC has maintained an excellent bullish movement since April 2019 where it had a great impulse until 13800 where the price has found fatigue and this correction has been long, but the structure of candles maintains a pattern of continuation bullish, this correction within the figure already begins to show reversal signal, so very soon we could see a continuous bullish movement towards the weekly offer located within the price range of 16239 – 19902, this would only be the beginning towards the way to form a new HH in the current trend, for this scenario to be completed, it is necessary that the price remains above 7,000 – 7,120, if the price returns to 6000, we could see a longer retreat towards the price range of 4600 – 5500, therefore, I recommend to follow very closely the action of the price in 1D and always remember to place your stop loss to avoid possible invalidations during the move.

As I always say, you have to be aware of the movement, invalidations can occur, there is no 100% reliable analysis, take your own precautions when trading.

You can follow me on Twitter: https://twitter.com/armijogarcia

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