Bitcoin, Trading Between The Lines, Local Range Building!

May 9, 2020

Hello, Traders Investors And Community, welcome to this analysis about the locally price-structure within the bitcoin-price and therefore it's resulting range building and further movement of price, we had seen bitcoin taking out several important resistance zones with high volatility nevertheless there is still resistance remaining which shouldn't be excluded. We are looking at the local 4-hour time-frame and there are some meaningful signals we can note at the moment. This is a view of the local price-chart, I also made an analysis of the middle and long-term price-chart which I recommend you to watch when going on my account and looking at the analysis to have a full-depth-overview.

As I already postponed bitcoin crossed the historical fundamental falling trend-line which resulted in the falling lower highs of the past. It was an important step to take out this trend-line and therefore confirm the overall wedge we have in the higher time-frame. At the moment we can expect bitcoin to visit this area again as we bounced back from the consequential 10.000 range which already served as strong resistance in the past. However, there is a profound support-cluster which you can see in my chart, this cluster has more than one bullish support-factor which will be highly likely respected when we visit this area again and test it as possible support. Firstly there are the highs build in the trend before at 9330 and it is also the level where we tested the falling trend-line, secondly, there is the EMAs 35 to 55 which confirming this overall support-zone and next, there is the falling trend-line itself, therefore, we have the really solid likelihood that we will bounce in this area.

The big question now is the consideration if we can hold this level up as strong support or get a weakening price-structure. We need to keep in mind that it is also possible that we bounce here several time before building a smaller range and finally going down similar as we had seen it between 10th February and 18th February this year. So this scenario has definitely importance in the structure, in order to succeed and continue with the local trend we need to take out the blue falling trend-line and at least test the grey resistance you can see in my chart marked at the 10030 levels, after this, we have potential to move higher at least testing the level between 10470 and 10610. Overall we can see bitcoin building a range here firstly a smaller range between 9330 and 10030 and after we confirm the scenario as mentioned and seen in my chart the bigger range between 9330 and 10600.

For finally succeeding with the overall current uptrend we need to building stable support in this range before moving higher otherwise we can still confirm it as resistance and fall down similar to the scenario we had seen between the 10th and 18th February and also before that at 27th of 2019! These examples exemplifying that there is serious resistance in this zone that needs to be taken out to provide a solid confirmation to the upside. Currently, we need to keep an eye also on the bearish scenario as the market is overbought and we confirmed this current range more than one time as strong resistance. I see many people calling the moon to be reached in one week this is factly not possible as bitcoin is moving slower than in 2017, therefore, we need to see how bitcoin continues and provides us the proper confirmation to succeed sustainable.

Thanks for watching, support for more market insight, and a good weekend, everybody! ;)
Intercession is the key of the morning and the fastener of the evening.
In this manner: FAREWELL

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