Why Bitcoins Initial Bull-Trap May Be Just Peak Of The Iceberg!

6 dic 2020

Hello Traders Investors And Community,

Welcome to this analysis about Bitcoin, we are looking at the weekly timeframe perspective, the recent events, the current formational structure and what we can expect the upcoming times. As mentioned already in previous analysis Bitcoin after forming its all-time-high moved into an initial bull-trap as the high was made and a swift bearish pullback after it emerged, now as it is not seldom seen that after such reaction more bearishness follows and as this is also what to expect firstly on the lower timeframes next times I discovered other meaningful signs which are determining for the next outcomes especially when Bitcoin shows up with the decisive price-action this can exaggerate into more volatility further ahead, therefore I detected all the important levels and likely outcomes we should consider with Bitcoins established structure and the upcoming destinies.

As when looking at my chart we can watch there how Bitcoin now initially pulled back and closed below the all-time-high already on the weekly timeframe basis, besides that the price already struggled last weeks within this region and indicators also showing overbought conditions, furthermore it is a completion of an underlying wave-count within the structure, all these factors indicating pullbacks coming up the next times that will first move into the dashed ascending-trend-line marked in my chart in grey which is the first reference-point for bullishness in the structure, when this trendline is broken to the downside and Bitcoin closes below it this will move into more protracted bearishness as Bitcoin is also trading within this low-volume-dynamic-volatility-zone where the price-action either up or down does not take much to move further with high volatility similarly as we have seen it with the bullish price-action this can also likely happen the other way around with bearish price-action.

When Bitcoin finally closes below this important ascending-trend-line which should not be kept by side here this will initiate further pullbacks in the structure as it is marked in my chart and Bitcoin will move on further till there is support found to reverse which Bitcoin has way lower in the structure within the blue cluster marked in my chart which is exactly matching with the 50% Fibonacci-support and the previously established preliminary lower support, besides that the 65-EMA and the 100-EMA coming into place there and it is the first region where increased volume is lying, taking this into the consideration it can be a good place for a stabilization however till then we can expect the bearish pressure to follow up through the structure when Bitcoin moves below the suggested level this is why we definitely should be prepared on further bearish pullbacks coming up next times.

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.