Bitcoin, Testing Remaining Range, These Are Important Level!

30 de ago. de 2020

Hello Traders Investors And Community, welcome to this analysis where we are looking at bitcoin 4-hour timeframe perspective, the recent events, the current formational structure and what to expect next times. Since bitcoin confirmed the double bottom above the important 200-EMA it provided some healthy up moves not only on the shorter timeframes but also on the bigger like 12-hour or daily charts. Overall bitcoin can provide this further but a significant and meaningful question in this structure is if bitcoin manages to hold this established bullishness or lock the remaining resistances to fall back again. In this preliminary case, I detected the important levels in the current range and where the journey can head over.

Looking at my chart you can watch there that bitcoin recently just confirmed above the 60-EMA in black which was an important step because this EMA previously confirmed several times as meaningful resistance not only in bitcoin but also in other cryptocurrencies on the 4-hour timeframe. Currently, there are two possible scenarios, the first is bitcoin pulls-back below the EMA as it was seen before to visit firstly lower levels again either to fall more or confirm them as support, the second scenario is bitcoin holds above the EMA and confirms it as support to move on, because bitcoin established this healthy volatility above the EMA which was not the case in past price action the bullish confirmation is currently more likely as firstly the pullback.

When bitcoin shows up with the more likely scenario holding above the EMA and moving on there is this dashed grey falling resistance line which bitcoin has to take out fully to confirm further bullishness, when this is done there comes the crucial part of the whole structure because bitcoin has still this strong rising resistance you can watch marked in blue there is a high possibility this level will firstly show up with resistance which will bitcoin bring into a pull-back and the crucial confirmation you can watch in the blue box where the EMA and support line coming together and which need to hold in order that bitcoin moves on and establishes new highs further above in the structure to test the rising blue trendline once again as it is marked.

Bitcoin is in a situation where it has to decide if the established short-term-strength can hold further or the resistance level showing initiative and bitcoin goes on to pull-back to visit lower levels. In this case, it is important to note that bitcoin possibly has not completed the bearish pull-backs in higher perspective for now, therefore, we should not keep this bearish case by side, as many people getting completely bullish this can prove fatal in the end when it turns out that bitcoin just moving in a bear-rally where more downside is to come, therefore it is from very high importance that we elevate and see how bitcoin reacts in the suggested levels and scenarios in order to anticipate the next times correctly and do not over speculate as smart money operators just waiting on the other side for that.

In this manner, thank you for watching, support for more market insight, all the best!
"Market wisdom belongs to the most preserved."

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