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Bitcoin: Eyeing a Reversal Confirmation

Bitcoin is on its way to confirm the reversal pattern.

Here are the series of events that happened post the longest bearish trend (50-days long).


  • June 23 was marked as swing zone based on Fibonacci Time Extension.
  • The next day prints a Dragonfly Doji pattern,  which is traditionally a bullish sign.
  • Attempted a panic sell situation but the price couldn't free-fall. Instead, BTC gradually dropped below 6K.
  • Further drop could only put the CMF or volume higher resulting in a strong bullish divergence. This was also notable on the momentum indicators such as RSI.
  • Note that we have not see so many bullish divergences of RSI in case of BTC. We have seen two major bearish divergences near psychological levels (20k, 10k).
  • While the Awesome Oscillator shows twin peaks with some buyers strength.





Here is another daily chart with other indicators. Note the swing zone 21 and the follow-up Doji.




Conclusion:

It is clear that the reversal pattern might be true and it will happen. If so, then BTC may breakout 7200 on a higher volume which will signal a test of 9200 and 10000.

Failed swing will happen if BTC re-traces downwards towards 5700.


Update July 08, 2018


 Here is a follow-up of the previous post. 

Awesome Oscillator is nearing a bullish cross, whereas Directional Indicators are already bullish. MACD problem is going to be solved soon as soon as it enters in bullish territory. 


And this can simply end the 50-days long bear and choppy market (look at the Aroon bullishness and Chop zone color change to green).




Update: July 24, 2018


Finally, it is all proven, BTC reverses and touches 8K and buyers are waiting for a healthy pullback towards the last high. Here is an updated chart. Congratulations to those who followed this and became bullish:




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