IOTUSD Mid Term Technical Analysis | IOTUSD Formed ButterfLyThe descending triangle and firm support:
On bitfinext week chart since Sep 2018 the 20th ranked leading cryptocurrency is moving within a descending triangle , during this period the price action is hitting second time on the support of triangle and also at the lower bands of Bollinger bands .
One of the main reason that the priceline is not able to breakdown the support sofar is that the volume profile of complete pattern is showing very weak interest of traders at the support of triangle therefore whenever the price action hits the support the selling interest gets weak and the bulls take charge and take the price action up to the resistance of this triangle so this time again we can expect the bounce upto the resistance of triangle very soon.
The ichimoku bear cloud is also getting squeezed.
The oscillators and MACD:
The relative strength index ( RSI ) has entered in oversold zone indicating that the sellers will be weak at this area and if we see the moving average convergence divergence then it is still bearish and fast length and slow length MAs are moving sideways but soon they can give bull cross signals, the stochastic RSI is also oversold and it can also give bull cross very soon.
The harmonic move:
If we zoon the corner of the triangle then we can clearly see that the price action has completed the formation of bullish butterfly pattern which can lead to breakout of triangle lets have a look at this pattern.
After initial leg the A to B leg is retraced upto 0.786 Fibonacci then B to C leg is projected between 0.382 to 0.886 Fibonacci projection of A to B leg then final C to D leg is retraced between 1.27 upto 1.618 Fibonacci and here we have all legs driven as required for perfect bullish butterfly .
Now we are in potential reversal zone of this pattern and from there the priceline should move up between 0.382 upto 0.786 Fibonacci projection area of A to D leg so this move has capacity to give upto 66% profit but if the candles sticks will be closed above 0.786 Fibonacci levels then the price action may have breakout from the resistance of this descending triangle’s resistance so we can set our buying and sell targets as below:
Buy between: 0.2025 to 0.1713
Sell between: 0.2267 to 0.2858
Regards,
Atif Akbar (moon333)
