Bitcoin, Testing Resistance, These Are Possible Outcomes!

6 Ağu 2020

Hello Traders Investors And Community, welcome to this update-analysis where we are looking at bitcoins 2-hour timeframe perspective, the recent events, the structural-formation, the importance of further outcomes and how to handle upcoming situations and take appropriate action. Bitcoin confirmed the huge global resistance it had properly and made this volatile but unnatural downmove which it now recovers and approaches important levels, now this does not mean bitcoin is completely bullish as it recovered nearly fully the bearish move to the downside, there are still strong resistance levels and not to mention the overbought condition bitcoin has on the higher timeframes, therefore we should not be naive and dont keep the reverse perspective out of sight as this is what to often happens these days. In this case I detected some important illuminations which will determine bitcoins destiny further.

Looking at my chat you can watch there that bitcoin just climbing up and forming this first rising-uptrend-line marked in black which bitcoin confirmed as support but what is important currently are the strong resistance levels which bitcoin has and also confirmed several times in the past with heavy volatile bearish downmoves, the first important resistance to mention is the 11930 to 12030 which bitcoin highly likely will approach and after this it is posisble to enter bearish pressure as supply lies down but when this isnt strong enough bitcoin has still some room to move higher to the second resistance which is between 12150 and 12300 marked in my chart, when bitcoin approaches this level it can be a bull-trap as this is still huge resistance and the price can reverse in this level, only when price goes above this level there can be a possible continuation in sight till then we should not ignore these bearish signs in the established environment.

What is meaningful in the structure is the 20-EMA marked in black and the first rising-support line in blue, when these two levels are broken to the downside a continuation is highly possible which will sent bitcoin to test remaining support levels in the structure which are the 50-EMA and the second rising-trendline, in this case it needs to be elevated and seen what bitcoin does there, if bulls are strong enough to stablize it can reverse and move higher otherwise when this does not happen and bitcoin also confirms below the second rising-trendline and the EMA bearish pressure will continue within a high possible spectrum. This does not mean bitcoin is completely bearish but it means it has to show how it can stabilize which is very important to not get overwhelmed by circumstance when markets do not move into the suggested direction, this means trading sustainable and dont rely on mere speculation.

In this manner, thank you for watching, support for more market insight and have a good day!
"Knowing trading is wisdom, knowing the market is enlightenment"

Information provided is only educational and should not be used to take action in the markets

7 Ağu 2020

Not

Bitcoin broke below First Rising-Support and testing further level

7 Ağu 2020

Not

We will see if continuation is within the sight or a recovery can happen here