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BTC / USD 1D (Bitstamp)- Possible Bullish Fractal Scenario for BITSTAMP:BTCUSD by xenolink

– This past April, BTC healthily corrected and has broken below the 50 D moving average after 8 months holding above it. If we look to the left back in 2017, there were two bullish fractals in July and September (Green Elliptical Circles), when the 50 D MA was broken, the 100D MA was the next line of support, and on the weekly chart it would touch the 21 week EMA or come close to the 21 week MA. After that correction the Price Action would then rise above the 50 daily MA and retest before the rise to test the 2 YR MA X5 ( Bitcoin Investor Tool) (Purple Line).

BTC could possibly follow a similar scenario, BTC broke below the 50 D M, then tested the 100 D MA, and then rises and close above the 50 D MA at the close of the month. What I am looking for now is if BTC can hold the 50 D MA as support this week. In my opinion there is a good probability BTC may try to repeat a bullish fractal like in 2017 , and possibly rise to new ATH’s and retesting the 2 Yr MA X5 purple line over the next weeks.

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Also a couple more things to note

– The two previous encircled fractals in 2017 has reached a bottom Daily RSI close to a level of 30 (Circled in Red) before its higher rise. This most recent Daily RSI dip has reached around 30 as well.

BTC recently also did not touch the 21 week EMA & MA like in 2017’s fractal , however Bitcoins Price Action certainly did come near it. I am still keeping an eye on a possibility of BTC touching the 21 week MA if it can’t hold above the 50D MA.

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