Bitcoin, Decisive Formation Determining Further Outcomes!

10 авг. 2020 г.

Hello Traders Investors And Community, welcome to this analysis where we are looking at bitcoins 4-hour timeframe perspective, the formation it is currently building, what can happen the next times and how to handle the situation especially when a confirmation occurs. Bitcoin is really trading in a significantly meaningful range currently where it has to decide if further outcomes occurring bullish or bearish as this is often the case after such formations we should not ignore the outcome and do not lock into one particular direction, in this case, I detected some interesting points which need to be considered and which can confirm the triangle in each particular way. On the more middle-to-longer term perspective bitcoin shows up a higher bullish edge but that does not mean the market can not fall to lower levels before a back-up can be considered.

Looking at my chart you can watch there the triangle-formation bitcoin is building marked in blue with the price consolidating to the upside and also building support with the 50-EMA in red where it already bounced several times till the point where it is trading now and recently shown increased volatility to the downside where it is testing the 50-EMA once again. The next times it is possible that bitcoin will show a longer consolidation in the triangle as it is marked in my chart before deciding in which final direction it is going as it is highly unlikely that bitcoin shows an immediate direction in the condition it is currently trading, a bullish breakout is slightly more possible but it needs to be confirmed therefore the bearish case should not be kept by side.

In such situations, it is important to look for the proper confirmation of the triangle as there are factors playing into the bullish as well as into the bearish scenario, therefore the best and secure way is to wait on the confirmation before deciding in which direction the journey will go, this will happen in the bullish case with a move above the upper boundary and a secondary confirmation of it will a bounce-back to the line to move higher, the bearish case will play out with a volatile price-move below the lower boundary and below the 50-EMA this will result in increased bearish downside movements and possible to trade on the short-side, in either case, the best way when considering a bigger entry is to look for the proper price-action in the level before entering.

In this manner, thank you for watching the analysis, support for more market insight and all the best.

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