Bitcoin, Builds Major Reversal-Formation, Crucial Zones!

3 de dez. de 2020

Hi my friends,

Welcome to this analysis about Bitcoin on the 1-hour timeframe perspective, since Bitcoin made the all-time-high and after that showed up with bearish pullbacks we should not underestimate the bearish pace and possible continuations following-up especially as Bitcoin is still strongly overbought on the higher timeframe perspectives as well as on the lower one, the next times will be extremely crucial and as I discovered Bitcoin is forming a decisive formation here that when completed can show the major determinations and result into a bearish continuation, therefore I detected all the important levels and likely outcomes we should consider with Bitcoins established structure and the upcoming destinies ahead.

As when looking at my chart we can watch there the fundamentally significant formation Bitcoin is forming here on the 1-hour timeframe perspective, this ascending-triangle-formation is marked in blue within my chart and it is most often a bearish formation indicating a reversal and origin of strong bearishness when completed. Besides that Bitcoin also formed this coherent wave-count within the formation where it almost already completed all waves from A to D and is now about to complete the wave E that will finalize the whole wave-count, this important wave E will run directly into the strong resistance-cluster marked in my chart where it already got rejected once and a second rejection there will complete the ABC wave-count within this final wave E.

Next times it will be meaningful how Bitcoin reacts within this resistance-cluster and when the pullback from there will be strong this will likely be the origin for the final completion of the ascending-triangle-formation that will show up when Bitcoin moves below the lower-boundary and close there as it is marked in my chart, such price-action will indicate protracted and strong bearish pressure to follow-up to a point where support will be tested which will firstly be the level marked in blue in my chart at 18250 which will be extremely decisive because when Bitcoin does not hold this level sustainably and manages a bounce from there the bearishness will continue and move into an exaggeration when closing below this level.

When Bitcoin shows up with the bearish validations here as suggested this does not mean Bitcoin is completely bullish in the long-run nevertheless we should definitely not keep this bearish perspective out of sight especially as the double-top scenario is still given within the structure and the possibility increases when Bitcoin initially completes the ascending-triangle-formation here. It is a good example that shows that the underlying volatility within the cryptocurrency market should not be underestimated and as sophisticated traders, we should be prepared on such scenarios when lining up within the market without overspeculate things in one definite direction as it is seen too often these days.

In this manner, thank you for watching, have a great day everybody, and all the best!
"Prospect is the ingredient of good fortune."

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