Bitcoin, Building Another Big Triangle After The Small One!

22 may 2020

Hello, Traders Investors And Community, welcome to this update-analysis about the remaining indecisive situation within bitcoin and where we are heading further the next hours and days. The small triangle which I mentioned in past analysis broke finally to the downside if you didn't saw this analysis I recommend that you go to my account and watch it to have a full-depth-overview. At the moment there added some other significant signs which make it clearer in which direction Bitcoin will develop in the middle-term-perspective and the remaining conditions that need to be fulfilled to confirm the proper scenario, therefore we are looking at the locally 4-hour timeframe.

As you can see in my chart bitcoin confirmed the small red triangle exactly as mentioned and is now approaching the expected downside target-zone at the 8730 levels when we touch this zone it will be confirmed highly likely as support. What is more important in the bigger picture here is that bitcoin is forming a large triangle here which you can see marked in blue in my chart. This triangle was already realized by two touches of the upper boundary and the second touch of the lower boundary confirming when the downside target is reached therefore it increases the small-time bounce in this level for a rally to test the higher boundary of the triangle.

What we need to keep in mind here at the moment that bitcoin is building an overall consociational range which will break either to the up or downside. Remember that the best trades resulting from confirmed setups, in this case, it is the same, we need to see a confirmation before taking advantage of the opportunity as it is always almost the case. So when considering the continuation of the before established uptrend we need to break the upper boundary clearly to the upside after the third initial test, after this has been done the best will be a consolidation above the upper boundary or a test of the upper boundary to signal the continuation.

When considering the bearish side of things the importance of the current resistance at the psychological 10.000 USD mark should not be ignored therefore the bearish scenario is still in the schedule and will be realized when we clearly break the lower boundary of the triangle to the downside with a volatile move signaling continuation. After that has been done there is an important support level at 8100 which needs to behold for a possible bullish reversal otherwise when this is not the case the bearish breakdown below this level will be extreme because there is not much support below this area, in this case it will be possible to probably add to the short-position or open a new one when not already traded.

Thanks for watching everybody, support for more market insight, and a good weekend! ;)
Climb the mountains and get their good occasions when they show up.
In this manner: FAREWELL

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