Scenarios To Watch Since Bitcoin Tests 1.5 Year Old Key-Level!

3 нояб. 2020 г.Hello Traders Investors And Community,

Welcome to this analysis where we are looking at Bitcoin's 4-day timeframe perspective, the recent events, the current formational structure, what we can expect the next times, how possible scenarios can look like and how to possibly handle these scenarios appropriately. Bitcoin has managed to break out of the important consolidation above the meaningful 10.000 USD psychological mark and into a bullish impulse to the upside where it is now testing a historical level which was the last time seen back in june 2019, I already made an analysis focusing on this on the weekly timeframe, if you did not see this already I highly recommend you to watch it to have a full-depth-overview, this analysis building a coherent follow-up looking on a nearer timeframe perspective, therefore I detected all the important levels and scenarios to consider in Bitcoins established structure.

Looking at my chart you can watch there Bitcoin now testing several crucial levels within the structure, firstly it is the upper-boundary of its local steep ascending-channel and besides that it is also the key-level from the established high back in june 2019, furthermore, Bitcoin is ending its A-E wave-count to the upside here. Taking all these factors into consideration a pullback to the downside is highly likely as it is not seldom seen that price-action reverses after forming a fake breakout above such a key-level as it is in this case. When such price-action shows up basically there are two serious scenarios to consider here, the first one is when Bitcoin manages to bounce within the lower boundary after the pullback into it and the second one will show up when Bitcoin increases bearishness further to close below the boundary and continue with a pull-back-extension into the lower levels in the structure.

Currently, it is really important to do not overspeculate the market and to do not keep the bearish side of things fully by side here as Bitcoin still has serious resistance layers above and is more likely to show a pullback before a continuation and breakout above these layers can show up, on the long-term it is important for Bitcoin to hold above the descending-trend-line marked in red in my chart sustainable and do not fall below it because this will alter the dynamic and increase bearish pressure to the downside. What can also speed the bearish dynamic up is a fast increase in the corona and possible measurements resulting from it as such measurements against corona can lead to similar bearish volatility to the downside like we have seen it already back in March this year, for now, we need to be prepared for the testing of the lower boundary and then elevate what happens after it.

In this manner, thank you, everybody, for watching, have a good day as well as good trading, 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 market.