Bitcoin, Trading In Channel, These Determinations To Consider!

30 oct 2020

Hello Traders Investors And Community,

Welcome to this analysis where we are looking at Bitcoin's 2-days timeframe perspective, the recent events, the current formational structure, what we can expect the next times and how to possibly handle the situation appropriately. Since Bitcoin managed to breakout above the previously established strong descending-trend-line it now formed a coherent channel where it is running into the remaining resistance layers, at the moment we should not underestimate the bearish perspective as there is still a pullback remaining to confirm the formations Bitcoin has formed, therefore I detected the important levels and likely outcomes we should consider at the moment.

When looking at my chart you can watch there that Bitcoin has still the strong resistance-cluster above marked in red where not only horizontal resistance is lying but also the upper-boundary-resistance of the channel and the wave-count is ending, this is why Bitcoin will have a hard time going above this cluster and it is more likely that Bitcoin firstly shows up with a smaller or bigger pullback from here, this pullback will firstly lead into the lower boundary of the channel as it is marked in my chart from this point Bitcoin can set up and test the upper resistance layers again, when it fails again within this level the next substantial supports in the structure will be pointed.

Taking the upcoming price-action into consideration Bitcoin will continue with bearish pressure to the downside when it crosses below the lower boundary of the ascending-channel-formation, when this price-action shows up the bearishness will continue till the back-up-cluster marked in blue within my chart is reached, within this cluster several supports coming together consisting of the previously established S/R-Line marked in black, the 60-EMA marked in red and very important here the 38.2% and 50% Fibonacci-levels, this zone can be the origin of the next waves to the upside, it is however absolutely necessary that Bitcoin bounces in this area and does not fall below it because this will increase bearish pressure further in the structure.

In this manner, thank you everybody for watching, have a good day as well as good trading, all the best!
“There are many roads to prosperity but one must be taken.”

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