Bitcoin, Testing Above 2019 High, Important Considerations!

2 nov 2020

Hello Traders Investors And Community,

Welcome to this analysis where we are looking at Bitcoins weekly timeframe perspective, Bitcoin recently tested above the major established high-condition the last time seen in June 2019 at the high of 13870, this was a crucial move above this level and Bitcoin is now in a range it did not trade since back in 2017, besides that the fact that Bitcoin firstly showed a pullback before moving above this level needs to be assessed rightly as such pullbacks when crossing above important levels can lead to increased bearish pace, therefore, leading into a fak breakout, now this does not mean Bitcoin is completely bearish higher, moreover it means that it firstly needs to visit the accumulation levels before moving higher again, taking these factors into place I detected all the important levels and likely outcomes we should consider with Bitcoin at the moment and the upcoming movements.

Looking at my chart you can watch there Bitcoin just moved slightly above the June 2019 high-condition before pulling back there and closing below at the weekly timeframe, this initial close below the level and pullback is likely to produce more bearishness firstly visiting lower levels in the structure which Bitcoin has some solid supports holding on as it is marked in my chart with the descending-trend-line marked in grey where Bitcoin can bounce and provide the origin for the final wave 5 to the upside which will then lead into the upper resistance layers as it is marked in my chart with the red zone, when Bitcoin approaches this level as there are many resistances lying a pullback to lower levels is firstly more possible as Bitcoin will unlikely go directly through this level and move on further, this is why the zone can also be potential for the proper short-entry.

When Bitcoin completes the whole wave-count within the upper-resistance-layer a pullback from there should not be underestimated as there is still strong supply lying at the resistances as mentioned, this pullback will move on till there is the proper support found which can reverse the whole dynamic and back-up with Bitcoin, this will firstly be within the initial short-target-zone marked in my chart with the blue box, when Bitcoin manages to stabilize there it will have some good potentials further, when this stabilization is not strong enough and bullish weakness increases further Bitcoin will move on to the extended-short-target which will be then extremely important to hold considering any bullish stabilization and continuation because Bitcoin will increase bearish pressure exaggerated below it, for now we need to elevate how the wave-counts end and what happens after this, overall we should not underestimate the bearish side in any case here to be prepared when the market reverses volatility as this is not a seldom-seen phenomenon within the cryptocurrency space.

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.