Bitcoin, Range Building Above 10K, These Levels To Watch Now!

5 בספט׳ 2020

Hello Traders Investors And Community,

Welcome to this analysis where we are looking at bitcoin 1-hourly timeframe perspective, which is showing some quite interesting signals at a time, the bearish breakdowns firstly stopped and came to an end above the 10K psychological level, now, a big question is if this bearishness will continue to the downside or a reversal is building up here above the important level, in this occurrence, I detected the important levels to watch now and what bitcoin is more likely supposed to do, contrary what is not.

Looking at my chart you can watch there bitcoin trading below this descending-resistance-line marked in black where bitcoin already confirmed several times bearish to the downside therefore it is an important line we should not keep by site currently, furthermore bitcoin is trading in this bigger descending-channel-formation where it has support at the middle line of the formation, together with the falling-resistance-line it is building a triangular-cluster here marked with the red triangle in my chart, such clusters can either confirm to the up or downside, besides bitcoin is forming this possible double bottom marked in blue in my chart, this is why a breakout of the triangular-cluster to the upside is currently more likely. Although it is possible to trade such formation aggressively, the best option is to wait on the confirmation as there is still a little probability given that bitcoin breaks this structure to the downside.

The situation is a situation where bitcoin has to show if it is strong enough to form the bottom and a reversal or further decline will follow immediately, under the current conditions the bullish scenario is more possible nevertheless we should not ignore the bearish case at all because it is not seldom that the market sets up to continue after such heavy breakdowns, therefore we need to watch how the situation is developing here and trade what we see not what we think as the contrary is happening too often these days this is just what smart money operators waiting on.

In this manner, thank you for watching, support for more market insight, good weekend to you and all the best!
"The market is a procrastinator looking forward."

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