Bitcoin, This Channel-Boundary-Test Will Be The Decisive Source!

8 בדצמ׳ 2020Hello Traders Investors And Community,

Welcome to this fundamentally important analysis about Bitcoin, we are looking at the 6-hour timeframe perspective, the recent events, the established structural formation, what we can expect in the upcoming times, and how to possibly handle the situation in an appropriate manner. As mentioned already in the previous analysis Bitcoin has formed several important bearish signs determined by the double-top and many bearish formations it developed on the local timeframes, if you did not see this analysis I highly recommend it to you to have a full-depth-overview, this analysis is building a coherent follow-up. As I discovered now Bitcoin is trading within a decisive constellation which can lead into the complete double-top-confirmation below its neckline when the determined price-action shows up, it is also necessary to note here that a strengthening of the US-Dollar Currency Index, as well as a corona-increase and the resulting measurements, can have a strong impact on Bitcoins situation and the possible bearish declines awaiting that can gain in speed when these events take place, which should not be kept by side now.

When we look at my chart we can watch there Bitcoin is now testing the middle-line of the massive ascending-channel-formation marked in my chart in blue, this middle-line together with the 45- and 55-EMA is a significant reference-point in this structure currently still holding the movements to the upside, firstly it has to be noted that the bearish price-action will increase heavily when Bitcoin falls below this reference-point which is, by the way, the likely scenario to expect here, not only because Bitcoin completed this double top but also pulled back several times bearishly from this major-resistance-line marked in my chart in grey. Taking all these factors into consideration Bitcoin will continue bearishly next times when finally moving below the middle-line, when such price-action shows up the next support will be pointed which is the lower-boundary of the ascending-channel-formation, when Bitcoin visits this level it will be a crucial and decisive zone as it is marked in my chart with the orange box, when Bitcoin increases the bearish strength further and moves finally below this level it will complete the double-top as it is marked in my chart and result into a strong major-c-wave-extension, the only thing what can invalidate this scenario is a strong bounce from the lower-boundary which manages to somehow move above the major-resistance-line and close above it. Taking notice of all these measurements it will be of high importance how Bitocin reacts within the decisive-zone.

Bitcoin is in a situation where the ongoing bearish declines are still within the possible spectrum especially when looking at the fundamental side of things can new corona measurements upcoming the next times lead to a reaction similar to what we have seen in March this year where almost all global financial markets showed up with heavy bearish declines to the downside, besides that the US-Dollar Currency Index is heavily oversold these times and is awaiting a possible reversal, such an increase in the USD can lead to selling pressure in more risky assets like stocks as well as cryptocurrency, these are two factors that can increase the bearish dynamic over the foreseeable future and should be contemplated when looking for a possible hedge on the bearish side. The crisis rolled on this year is still not over and it is possible that we have just seen the beginning, as traders we should take such factors into our considerations and be prepared when volatile assets like the cryptocurrency show up with swift changes within the structure, next times it will be important how Bitcoin reacts when forming the suggested circumstances.

In this manner, thank you for watching the analysis, have a great day and weekend, all the best!
"Prospect is the ingredient of good fortune."

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