Will Bitcoins Wedge-Target Be Reached Before The Alteration?!

Aug 23, 2020

Hello Traders Investors And Community, welcome to this analysis about bitcoins daily timeframes perspective, the recent events, the current formational structure, what to expect the next times, and how to handle upcoming situations appropriately. Since bitcoin moved above its 12.000 USD resistance and formed a bull-trap it is trading in a critical range where it has to decide whether it reaches the broadening wedge target mentioned firstly or directly moves to the remaining support zones in the structure, both ways will provide minimum a pull-back to lower levels as bitcoins volatility weakens and the possibility for fake breakout increases this can be early warning signs that a key pull-back will follow up with next times, this does not mean bitcoin is fully bearish but the established bearishness should not be kept by side. In this case, I detected the important levels we should consider now.

Looking at my chart you can watch there that bitcoin is trading in this marginal parallel channel which marks the higher lows and higher highs in the structure, as I mentioned already in past analysis bitcoin is also forming a possible rising wedge formation here which confirms coherently to the structure, this means bitcoin can even move some higher before fully forming a bigger pull-back, these up moves can create sudden bull-trap as this was also the case the last times with bitcoin moving above 11900 and after that above 12300 before pulling back into the range again, such a scenario can happen again with bitcoin moving above the last established high even into the broadening wedge target zone which still exists since the broadening wedge has confirmed, when this happens we should not become completely bullish as there are strong resistance levels lying increasing the possibility to pull-back.

Basically there are two possible ways with the same outcome here for bitcoin , the first is that bitcoin moves higher in the current structure to confirm the still strong resistance at 12300 and forms a pull-back within there which will point to the remaining supports marked in my chart, the second way is that bulls are strong enough and push above the upper boundary of its marginal channel and confirm the broadening wedge target before forming a pull-back, in this second scenario the pull-back can be not that strong and with lower volatility but it should not be ignored in either case. When bitcoin reaches the back-up-cluster marked in my chart it has a solid possibility to stabilize there before moving back up, in this case it is important to hold the 10250 and don't close below it because this will increase bearish pressure, nevertheless, the reversal is more possible as there are significant supports lying down.

In this manner, thank you for watching, support for more market insight, all the best!
"If you have the conditions, you get the results."

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