Analysis Summary:
Hi Friends, welcome to this TA update of bitcoin,
If you follow my posts you must be knowing that in my last post I predicted that the Top of overall downtrend channel is sure to be breached, however it was breached as I expected but proved to be somewhat strong resistance, pulling back BTC downward again till it received the bounce again at combined support of EMA50 (ORANGE) and EMA200 (BLUE).
After the bounce on EMA, we can see that BTC has now moved significantly above the top of pink channel and since then it is moving sharply to break above the neckline of inverse head and shoulders pattern that I have drawn on the chart, once a breakout occurs above the neckline the target around $17000 which is calculated using size of the pattern, can be considered as target.
But I would like to point towards a few important points which are predicting that BTC will surely be halted at some points before breaking free and moving for the inverse H&S target. As you can see just below the neckline is the 61.8% retrace which combined with neckline is expected to resist BTC for some time before it gets a decisive break from the patter.
Even after the breakout you might remember that 50% retrace is the strongest resistance level that BTC has faced during its upward journey and I would suggest you to wait for a break above that level before going long for the inverse H&S target.
MACD on this chart is above the signal line which tends to be a bullish signal but I would like to point out that during the ongoing rise BTC breached the previous high on chart but that high was not able to form a higher high on MACD so far which in my eyes is a signal that is predicting another pullback.
However if BTC keeps producing straight green candles even after breaking above the neckline then this signal might get negated but I am expecting there will be a slight hold at 61.8% retrace or at the neckline then this MACD signal will materialize and definitely offer a correction, but the correction will only be expected to last till the top of pink channel since BTC has created a support at that level by moving significantly above it. A return inside the channel not looks likely since EMA levels are converging towards this line making it further strong as a support level.
The bullish EMA convergence is again on the chart, last time this signal was wasted but I am hoping that this time it will offer some greater upward push to BTC which will be required for breaking above heavy resistance at 50% retrace.
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.
Patience is the key to success
Legal Disclaimer: The Analysis posted here is personal view of author and not meant to be an investment advice. Technical Analysis is a set of possibilities based on the info on the chart, and it works because TA in itself is like a self fulfilling prophecy which cannot be underestimated.
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