Bitcoin, Bounced At The 100-EMA As Expected, What Comes Next?!

6 ביולי 2020

Hello Traders Investors And Community, hopefully, everybody had a good weekend and welcome to this update analysis where we are looking at recent events, the current price-structure and what we can expect the next times. As I mentioned in the previous analysis bitcoin was trading on the wage of an important decision where it has to decide if the fundamentally meaningful important 100-EMA which you see marked in orange in my chart can hold or not and I described that there is a good possibility that it can hold which it has done now, if you did not saw this analysis already I highly recommend that you watch it by going to my account and look at, by the way, it is really good to see that our elite VIP signal trading channel is making good gains also in such a heavy low volatile period the cryptocurrency space trades at the moment where opportunities are normally a rare thing.

As you can watch now in my chart bitcoin is still trading below the meaningful lower high trendline that is marked in black in my chart which is still an important resistance for bitcoin where it is likely that bitcoin confirms it as resistance but as bitcoin has some strong support levels below not only with the 100-EMA but also with the falling support line which has a long time origin in the 2017 booming bull market this is a solid support level for bitcoin and as the low volatile period has not ended yet which the data says bitcoin will decide in the current range in which direction it will continue and break out. It is a fact that the breakout will be heavy and highly volatile when it happens as it is normally the case after such consolidation periods the price will determine a paradigm shift therefore it is important to take note and determine in which direction the breakout will happen.

Bitcoin Weekly Timeframe And Triangle Perspective

Considering the bullish side of things it is from very high importance for bitcoin to hold the 100-EMA and below it the 200-EMA you can see marked in orange and blue in my chart, these levels of support holding the overall bullishness and there will come bearish pressure with a high likelihood when bitcoin does not manage to hold these levels and falls below them. Therefore this ongoing consolidation you can see in my chart can serve as a descending triangle formation which confirms the bearish move to the downside. But when these levels of support hold bitcoin have some good potential to move higher but this needs to show some volatility as this is needed to establish a decent and healthy trend to the upside otherwise the trend is weak and can anytime turn to the downside when new supply enters the market which can hit inexperienced traders and kick them out of their positions in the market.

But in comparison with the whole cryptocurrency space and especially the altcoin market we can take not that bitcoin currently is a strong leading part as it is the major, there are other currencies which showing really weak sings like XRP or BCH that trade way below the established highs the months where bitcoin is still near, therefore it is important to what will happen to bitcoin the next days and weeks because it will also determine the whole other market and when bitcoin shows more downside and falls below the previous mentioned supports this will cause a high possibility for doomsday in many altcoins, in this case, there can pop up opportunities on the short side to trade and take profit of which we are looking at and then take possible appropriate action which will increase when new high volatile movements enter the market and possibilities for the direction increase in the schedule.

In this manner, thank you for watching, support for more market insight, have a great day and all the best to you!
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Information provided is only educational and should not be used to take action in the markets.