The price line of world's leading cryptocurrency is caught in falling wedge since 23 Oct 2019 and has hit 2 times at the support of this wedge this time the price action is again moving down after hitting the resistance on 9 Dec 2019 for 3rd time and if the price action will hit the support this time then it will be also a 3rd hit on the support as well and we will be at the end of this wedge and the chances of break out or break down will be more increased at the end of this wedge.
But if we see the patterns and indicators then the signals are more in favor of breakout than break down lets have a look.
The oscillators and bollinger bands:
The RSI is entering the oversold zone second time since Nov 25 which indicates that the bear has no space left to drop it more down and Stochastic is also oversold but in in bear cross one the Stochastic will give the bull cross then it can be a very strong bullish signal.
Price action is also hitting the lower bands of bollinger bands for second time since Nov 25.
The bigger harmonic Crab pattern:
The price action is forming a big Crab pattern which is started since 22 Oct 2019 and now forming the final leg.
The final leg should be retraced from 1.27 upto 1.618 but so far it has retraced upto 1.255 and in order to complete the pattern it can move more down atleast from $6468.31 to $5403.90.
The smaller harmonic Gartley pattern:
But we have also gartley patterns formation which is completed and this pattern can invalidated the bigger patterns bear leg and the price action may take bullish divergence from here at any time or it may complete the bigger Crab pattern but that will be only a spike and the gartley will be still valid in case if a complete candle stick will be not closed below this gartley's potential reversal zone.
Now overall move of price action is more favor of bullish divergence rather than in bearish trend.
Regards,
Atif Akbar (moon333)
The oscillators and bollinger bands:
The RSI is entering the oversold zone second time since Nov 25 which indicates that the bear has no space left to drop it more down and Stochastic is also oversold but in in bear cross one the Stochastic will give the bull cross then it can be a very strong bullish signal.
Price action is also hitting the lower bands of bollinger bands for second time since Nov 25.
The bigger harmonic Crab pattern:
The price action is forming a big Crab pattern which is started since 22 Oct 2019 and now forming the final leg.
The final leg should be retraced from 1.27 upto 1.618 but so far it has retraced upto 1.255 and in order to complete the pattern it can move more down atleast from $6468.31 to $5403.90.
The smaller harmonic Gartley pattern:
But we have also gartley patterns formation which is completed and this pattern can invalidated the bigger patterns bear leg and the price action may take bullish divergence from here at any time or it may complete the bigger Crab pattern but that will be only a spike and the gartley will be still valid in case if a complete candle stick will be not closed below this gartley's potential reversal zone.
Now overall move of price action is more favor of bullish divergence rather than in bearish trend.
Regards,
Atif Akbar (moon333)
