Bitcoin, Testing Upper Resistance, These Outcomes To Consider!

Oct 13, 2020

Hi my friends,

Welcome to this analysis where we are looking at bitcoins 4-hour timeframe perspective, the recent events, the current formational structure and what we can expect the next times. Bitcoin has established a remarkable bullish pace within its range and structure however it has not yet confirmed decisively a trend and the next outcome definitely to come this is why the bearish scenario should not be kept fully by side here, as bitcoin approached higher we should not underestimate a pullback in this structure, this means to be prepared on possible changes to do not get overwhelmed by the market circumstances often faced these times, therefore I detected all the important levels and possible outcomes we should consider with bitcoin in its established structure to anticipate the upcoming destinies.

Price-Action Establishment and Possible Reversal:
As you can watch when looking at my chart bitcoin has established this coherent wave-count within firstly the first ascending-channel marked in blue and then also within the second ascending-channel marked with the dashed black trendlines as the price action to the upside got faster, now this was a crucial move as bitcoin has still remaining resistance levels higher in this environment, the main resistance is within the 11800-11900 which is also matching with the final wave of the wave-count and with the middle-line of the channel. This resistance is therefore more likely to produce a pullback to lower levels when touched, the big question then will be how protracted this pull-back will be and if there can come a fast reversal or the price-action firstly needs to stabilize.

Upcoming Outcomes:
Now as bitcoin is approaching these serious resistance-levels above there will come firstly a reversal in the structure sooner or later, this will move into the pullback when bitcoin crosses below the lower boundary of its channel with a decisive move, when this happens and bitcoin leavs its established second ascending-channel the pullback will go on till there is serious support found which can reverse the dynamic, the first support in this scenario is the upper line of the first ascending-channel marked in blue where bitcoin can bounce and form a back-up, when this does not hold the next will be the lower support marked in grey that is also matching with the middle-line lying there, this is extremely important to hold because bitcoin will increase bearish pressure when falling below it again, then the next steps need to be elevated, it will be interesting to watch how bitcoin develops further here.

In this manner, thank you for watching, good day my friends, and support for more market insight.
"Forecast is the ingredient of good fortune."

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