Has Bitcoin Changed Its Way From Other Markets?
Why BTC is getting stable while other markets are still going down?
Even though all markets are moving down but recently we have seen that the Bitcoin and top cryptocurrencies are getting stable if we see the market cap of cryptocurrency market then at this time it is more than 174 billion dollars. Few days back it was not more than 140 billion dollars as per coinmarketcap data this increment in market cap shows the interest of investors in the cryptocurrency market. In my point of view the interest can have one reason and that can be the situation we have in all over the world due to corona and pandemic.
Most of the people are quarantined at their homes there is a complete lockdown situation at different places. And most of the people are given work from home options by their organizations. The investors and traders would be thinking that if the situation will go worse then the markets can be closed and if the markets will be closed then their trade and business can be also stopped. And this cryptocurrency market never sleeps and never closes this market always awakes therefore in this situation crypto market is catching the attentions of traders and investors. This is my opinion you can correct me in comment section if you have some different point of view. Now lets move to the technical analysis that is my job.
Bitcoin turned bullish after hitting 200 SMA on weekly chart:
The 200 simple moving average is one of the strongest support ever in the history of Bitcoin as I have explained it in my previous articles that this simple moving average is never broken down since it was appeared in June 2015. After that the priceline had hit on the support from December 2018 upto Feb 2019 then it turned very strong bullish and moved up by more than 300%.
Now this time we can see that a strong bearish candle stick has hit this 200 simple moving average support very hard even though the price line has hit the spike beyond the moving average but in a very next can take it has turned bullish.
But sofar we are not out from the critical situation because the priceline is very close to this support and further more bearish move canl lead to the breakdown of this support therefore using this 200 SMA as stop loss is very important. Because if this simple moving average will be broken down then the BTC can turn more strong bearish.
Down trend line and volume profile are still in play:
In my previous articles I have been telling you that Bitcoin has formed a down trend line on long term weekly chart. This trend line cannot be ignored as the priceline of BTC has so many touches at this level.
The BTC has started moving above this trendline from July 2019 and this time the priceline of Bitcoin is again hitting at the support of this on this trendline . I have placed the volume profile on the complete price action moving above the trendline , now we can examine that the point of control of the volume profile of complete price action moving above this trendline is still at $10350.
And as discussed earlier in my previous articles we have noticed that POC works as center of gravity for the price action and it pulls back the price action towards itself whether the priceline is moving up or down. And after placing this volume profile on complete price action we can also examine that interest of traders is very low below $7,200 therefore it was expected that the priceline will be bounced back from this area and as we have seen earlier that the priceline is bouncing back.
And as in my previous articles we have seen that back in 2018 to 2019 same as like current down trend line a downtrend line was formed after the market crash of 2017. The formation of that trendline was started in March 18 and ended in February 19 for almost a year. The point of control of volume profile was at $6500 and the traders interest was very low below $6,000 level. And when the Bitcoin moved down from that level then priceline took a very powerful bullish divergence and moved up by more than 300%.
Bullish harmonic Crab can execute the bigger bullish harmonic move now:
In my previous article that I published on 14th March 2020 that during this strong bearish move the Bitcoin has completed the last leg of bullish Crab pattern and from potential reversal zone of this bullish Crab the price action was supposed to take the bullish divergence to enter in the Fibonacci projection area of A to D leg from 0.382 to 0.786 Fib. This Fibonacci projection area starts from $6477 and ends at $9098. And in recent bullish move we have seen that the BTC has reaced upto $7139 as per Bitstamp exchange.
A very big bullish Gartley is in play now:
Even though this recent bullish crab pattern is executed successfully but if the price action will manage to cross a up the 0.786 Fibonacci projection level then it can turn more bullish. And if it will turn more bullish then it can also help the price action to enter in the Fibonacci projection area of A to D leg of very big bullish Gartley pattern that is formed on monthly chart.
The buying zone or potential reversal zone of this very big bullish Gartley pattern starts from $7231.72 and ends at $5424.43 and the Fibonacci projection level or sell zone starts from $8654 and ends at $12070.
Conclusion:
If the bullish move will be continued then the priceline can easily achieve from $8654 and ends at $12070 but if the but if the 200 simple moving average on weekly chart strong support will be not sustained then priceline can turn more bearish and can achieve lower price than lowest price of Dec 2018.
Note: This idea is education purpose only and not intended to be investment advise, please seek a duly licensed professional and do you own research before any investment.
Even though all markets are moving down but recently we have seen that the Bitcoin and top cryptocurrencies are getting stable if we see the market cap of cryptocurrency market then at this time it is more than 174 billion dollars. Few days back it was not more than 140 billion dollars as per coinmarketcap data this increment in market cap shows the interest of investors in the cryptocurrency market. In my point of view the interest can have one reason and that can be the situation we have in all over the world due to corona and pandemic.
Most of the people are quarantined at their homes there is a complete lockdown situation at different places. And most of the people are given work from home options by their organizations. The investors and traders would be thinking that if the situation will go worse then the markets can be closed and if the markets will be closed then their trade and business can be also stopped. And this cryptocurrency market never sleeps and never closes this market always awakes therefore in this situation crypto market is catching the attentions of traders and investors. This is my opinion you can correct me in comment section if you have some different point of view. Now lets move to the technical analysis that is my job.
Bitcoin turned bullish after hitting 200 SMA on weekly chart:
The 200 simple moving average is one of the strongest support ever in the history of Bitcoin as I have explained it in my previous articles that this simple moving average is never broken down since it was appeared in June 2015. After that the priceline had hit on the support from December 2018 upto Feb 2019 then it turned very strong bullish and moved up by more than 300%.
Now this time we can see that a strong bearish candle stick has hit this 200 simple moving average support very hard even though the price line has hit the spike beyond the moving average but in a very next can take it has turned bullish.
But sofar we are not out from the critical situation because the priceline is very close to this support and further more bearish move canl lead to the breakdown of this support therefore using this 200 SMA as stop loss is very important. Because if this simple moving average will be broken down then the BTC can turn more strong bearish.
Down trend line and volume profile are still in play:
In my previous articles I have been telling you that Bitcoin has formed a down trend line on long term weekly chart. This trend line cannot be ignored as the priceline of BTC has so many touches at this level.
The BTC has started moving above this trendline from July 2019 and this time the priceline of Bitcoin is again hitting at the support of this on this trendline . I have placed the volume profile on the complete price action moving above the trendline , now we can examine that the point of control of the volume profile of complete price action moving above this trendline is still at $10350.
And as discussed earlier in my previous articles we have noticed that POC works as center of gravity for the price action and it pulls back the price action towards itself whether the priceline is moving up or down. And after placing this volume profile on complete price action we can also examine that interest of traders is very low below $7,200 therefore it was expected that the priceline will be bounced back from this area and as we have seen earlier that the priceline is bouncing back.
And as in my previous articles we have seen that back in 2018 to 2019 same as like current down trend line a downtrend line was formed after the market crash of 2017. The formation of that trendline was started in March 18 and ended in February 19 for almost a year. The point of control of volume profile was at $6500 and the traders interest was very low below $6,000 level. And when the Bitcoin moved down from that level then priceline took a very powerful bullish divergence and moved up by more than 300%.
Bullish harmonic Crab can execute the bigger bullish harmonic move now:
In my previous article that I published on 14th March 2020 that during this strong bearish move the Bitcoin has completed the last leg of bullish Crab pattern and from potential reversal zone of this bullish Crab the price action was supposed to take the bullish divergence to enter in the Fibonacci projection area of A to D leg from 0.382 to 0.786 Fib. This Fibonacci projection area starts from $6477 and ends at $9098. And in recent bullish move we have seen that the BTC has reaced upto $7139 as per Bitstamp exchange.
A very big bullish Gartley is in play now:
Even though this recent bullish crab pattern is executed successfully but if the price action will manage to cross a up the 0.786 Fibonacci projection level then it can turn more bullish. And if it will turn more bullish then it can also help the price action to enter in the Fibonacci projection area of A to D leg of very big bullish Gartley pattern that is formed on monthly chart.
The buying zone or potential reversal zone of this very big bullish Gartley pattern starts from $7231.72 and ends at $5424.43 and the Fibonacci projection level or sell zone starts from $8654 and ends at $12070.
Conclusion:
If the bullish move will be continued then the priceline can easily achieve from $8654 and ends at $12070 but if the but if the 200 simple moving average on weekly chart strong support will be not sustained then priceline can turn more bearish and can achieve lower price than lowest price of Dec 2018.
Note: This idea is education purpose only and not intended to be investment advise, please seek a duly licensed professional and do you own research before any investment.
การนำเสนอที่เกี่ยวข้อง
คำจำกัดสิทธิ์ความรับผิดชอบ
ข้อมูลและบทความไม่ได้มีวัตถุประสงค์เพื่อก่อให้เกิดกิจกรรมทางการเงิน, การลงทุน, การซื้อขาย, ข้อเสนอแนะ หรือคำแนะนำประเภทอื่น ๆ ที่ให้หรือรับรองโดย TradingView อ่านเพิ่มเติมที่ ข้อกำหนดการใช้งาน