This can be a perfect buying opportunity
STX coin that can lead the price action to start a very powerful rally soon.
The re-testing of channel’s resistance as support:
In my previous article we have seen that the price action of Blockstack coin was moving in a channel and finally the price action broke out the resistance of the channel with a powerful rally then started the new correction rally. At this time the priceline of STX is re-testing the previous resistance of the channel as a support. In case of successful re-testing the price action will start the next rally otherwise the can re-enter in the channel again. Therefore it can be a very good buying opportunity above this support.
Priceline is likely to take bounce from SMAs:
Now let’s have a look on the different simple moving averages with the time period of 25, 50, 100 and 200 on the . It can be observed that during this correction rally the price action has broken down the 25 and 50 simple moving averages and at this time the price action is likely to take a bounce to the upside from the 100 and 200 simple moving averages at the same time.
A new up is working as support:
If we place a trend-line below the from January 2020 up till now then it can be also seen that the price action has found a strong support above this up . At this time the price action has again bounced from this uptrend line.
Now I would like to show you a very significant move of the price action of STX coin with Bitcoin and US dollar pairs. That move is the formation of a pattern. If we dig this pattern more deeper then it can be observed that the all dimensions are driven perfectly as required for the BAT move. After initial X to A leg the price action is retraced between 0.382 0.50 level. Then it is projected between point 0.382 to 0.886 of A to B leg. Then C to D leg has been retraced between point 0.786 0.886 levels. And now the price action is likely to move up from this potential reversal zone of pattern.
The price action of Blockstack is already at the strong support that is in fact the previous resistance of the channel. At the same time it is also getting bounced from the 100 and the 200 simple moving averages on the . And has formed a complete . All these moves are showing very positive gesture in the favor of rally very soon. Therefore it can be a very good buying opportunity. However, we can use the 100 or 200 simple moving averages on the as stop loss. Because if these moving averages will be broken down then we can expect a further downward rally up to the support of the previous channel.