XTZUSD formed bullish Shark | Upto 125% bullish move expected
An eye on previous bullish harmonic move:
Hi Folks hope you are doing well, this bearish trend is helping many tokens and cryptocurrencies to complete their final bearish legs to form bullish patterns and Tezos (XTZ) is also one of them. This time the XTZ has also completed another harmonic move but before moving to current pattern lets watch the previous move so it will be easy to understand the current harmonic move.
Below was the long term 2 week chart I published on 1st November 2019 and on this chart I found that the XTZ had formed a perfect Gartley pattern. The formation of this pattern was started on the candlestick which as opened on 21st January 2019. The initial leg was completed on the candlestick that was opened and closed on 13th May 2019. After that we have witnessed that the price action has retraced between 0.618 to 0.786 Fibonacci level and completed the A to B leg. After this retracement the price line of Tezos projected between 0.382 to 0.886 Fibonacci projection and this was the Fibonacci projection area of A to B leg. When I published the chart at that time priceline was moving in the potential reversal zone and we had 4th candlestick in this area.
Now from that potential reversal zone the XTZ was suppose to move up and enter in the Fibonacci projection area of A to D leg between 0.382 to 0. 786 Fib level. So there was almost 150% bullish move was expected but we have witnessed that Tezos turned very strong bullish and first the price action entered in the Fibonacci projection area and from December 2019 to January 2020 the price action started a correction rally between the projection area of A to D leg and then broke out the 0.786 Fibonacci level as well and produced more than 348% massive profit.
Failed in breaking out the long term resistance:
After producing such a massive bullish rally the price action found a long term strong resistance at $3.52 and finally the priceline of failed to break out this resistance level and dropped down back in the Fibonacci projection of A to D leg of previous bullish Gartley pattern. At this level the price action is also hitting at the previous support of $1.26 and also using the 0.382 Fibonacci projection as a support.
The Tesoz is hitting at the support that is never broken down:
Now if we move to 2 day chart then it can be observed that the price action of XTZ is now at 200 simple moving average support and at the same time it is also hitting at the 100 SMA. As per Kraken exchange this 200 moving average was first time appeared on 17 November 2019 and since then the price action of Tezos never has hit on the support this time the price line of XTZ is touching at 200 simple moving average support for the first time in its history as per Kraken exchange chart.
A recent harmonic move can produce another bullish rally:
Now if we closely examine on this 2 day chart then it can be clearly seen that Tezos has formed another harmonic pattern. And this time the pattern is bullish Shark. The initial leg of this pattern was started on the candlestick that was opened and closed on 3 January 2020 and this initial leg was completed at the candlestick of 12th Feb 2020. After that the price action retraced between 0.382 to 0.618 Fibonacci level. (there is slight difference to reach up to the level of 0.382 but I have ignored this slight difference because all other legs of this pattern are formed perfectly as required for a perfect bullish Shark. After the completion of A to B leg the price line of XTZ was supposed to be retraced between 1.13 to 1.618 Fibonacci projection of A to B leg and on the chart we can see that the price action has projected up to 1.363 Fibonacci projection. finally the recent strong sell off has helped the XTZ to complete the last leg of this pattern and the final leg is retraced down between 0.886 to 1.13 Fibonacci level as required for the C to D leg of bullish Shark pattern. We can see we have fourth candlestick moving in this potential reversal zone. Now as per Fibonacci sequence method priceline is supposed to take a bullish divergence from this PRZ level to enter in the Fibonacci projection area of C to D leg from 0.382 to 0.786 Fibonacci projection.
As per Fibonacci sequence the potential reversal zone and Fibonacci projection of C to D legs are as below:
Potential reversal zone: $1.4984 to $0.9170
Fibonacci projection of C to D legs: $ 2.0710 to $ 3.2854
So this time Tezos has capacity to produce upto 125%. However if the priceline will manage to cross up the 0.786 Fibonacci projection then it can breakout the $3.52 resistance as well.
Stop loss:
The maximum extent of potential reversal zone at $$0.9170 can be used as stop loss because if this level will be broken down then XTZ can start another bearish rally towards downside.
Regards,
Atif Akbar (moon333)
Hi Folks hope you are doing well, this bearish trend is helping many tokens and cryptocurrencies to complete their final bearish legs to form bullish patterns and Tezos (XTZ) is also one of them. This time the XTZ has also completed another harmonic move but before moving to current pattern lets watch the previous move so it will be easy to understand the current harmonic move.
Below was the long term 2 week chart I published on 1st November 2019 and on this chart I found that the XTZ had formed a perfect Gartley pattern. The formation of this pattern was started on the candlestick which as opened on 21st January 2019. The initial leg was completed on the candlestick that was opened and closed on 13th May 2019. After that we have witnessed that the price action has retraced between 0.618 to 0.786 Fibonacci level and completed the A to B leg. After this retracement the price line of Tezos projected between 0.382 to 0.886 Fibonacci projection and this was the Fibonacci projection area of A to B leg. When I published the chart at that time priceline was moving in the potential reversal zone and we had 4th candlestick in this area.
Now from that potential reversal zone the XTZ was suppose to move up and enter in the Fibonacci projection area of A to D leg between 0.382 to 0. 786 Fib level. So there was almost 150% bullish move was expected but we have witnessed that Tezos turned very strong bullish and first the price action entered in the Fibonacci projection area and from December 2019 to January 2020 the price action started a correction rally between the projection area of A to D leg and then broke out the 0.786 Fibonacci level as well and produced more than 348% massive profit.
Failed in breaking out the long term resistance:
After producing such a massive bullish rally the price action found a long term strong resistance at $3.52 and finally the priceline of failed to break out this resistance level and dropped down back in the Fibonacci projection of A to D leg of previous bullish Gartley pattern. At this level the price action is also hitting at the previous support of $1.26 and also using the 0.382 Fibonacci projection as a support.
The Tesoz is hitting at the support that is never broken down:
Now if we move to 2 day chart then it can be observed that the price action of XTZ is now at 200 simple moving average support and at the same time it is also hitting at the 100 SMA. As per Kraken exchange this 200 moving average was first time appeared on 17 November 2019 and since then the price action of Tezos never has hit on the support this time the price line of XTZ is touching at 200 simple moving average support for the first time in its history as per Kraken exchange chart.
A recent harmonic move can produce another bullish rally:
Now if we closely examine on this 2 day chart then it can be clearly seen that Tezos has formed another harmonic pattern. And this time the pattern is bullish Shark. The initial leg of this pattern was started on the candlestick that was opened and closed on 3 January 2020 and this initial leg was completed at the candlestick of 12th Feb 2020. After that the price action retraced between 0.382 to 0.618 Fibonacci level. (there is slight difference to reach up to the level of 0.382 but I have ignored this slight difference because all other legs of this pattern are formed perfectly as required for a perfect bullish Shark. After the completion of A to B leg the price line of XTZ was supposed to be retraced between 1.13 to 1.618 Fibonacci projection of A to B leg and on the chart we can see that the price action has projected up to 1.363 Fibonacci projection. finally the recent strong sell off has helped the XTZ to complete the last leg of this pattern and the final leg is retraced down between 0.886 to 1.13 Fibonacci level as required for the C to D leg of bullish Shark pattern. We can see we have fourth candlestick moving in this potential reversal zone. Now as per Fibonacci sequence method priceline is supposed to take a bullish divergence from this PRZ level to enter in the Fibonacci projection area of C to D leg from 0.382 to 0.786 Fibonacci projection.
As per Fibonacci sequence the potential reversal zone and Fibonacci projection of C to D legs are as below:
Potential reversal zone: $1.4984 to $0.9170
Fibonacci projection of C to D legs: $ 2.0710 to $ 3.2854
So this time Tezos has capacity to produce upto 125%. However if the priceline will manage to cross up the 0.786 Fibonacci projection then it can breakout the $3.52 resistance as well.
Stop loss:
The maximum extent of potential reversal zone at $$0.9170 can be used as stop loss because if this level will be broken down then XTZ can start another bearish rally towards downside.
Regards,
Atif Akbar (moon333)
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