As you can watch when looking at my chart is that bitcoin is trading in the third historical second accumulation channel which is marked in blue, bitcoin already provided two such channels in the past where it initially formed a first accumulation channel and then moved up into the second one where the accumulation gets longer and stronger to finally break to the upside, also these accumulation channels forming up to a bigger channel in which bitcoin is moving. Now as this accumulation period has not ended yet bitcoin can still move lower to visit some lower levels in the accumulation range before backing up and finally confirming it, this scenario is not far away because there are still important resistance zones at the 10.000-10.5000 level which can hold and send bitcoin firstly to lower levels as the price do not show any advance above the till weeks now.
When bitcoin visits some lower levels in the accumulation structure which is also logically following up with the big triangle in which bitcoin is trading you see in my chart this does not mean bitcoin is completely but this means that bitcoin shows some correction before possibly backing up to test the remaining resistance zones again. As this scenario is highly possible at the moment it shows only one side of the Medaille, the other scenario is for bitcoin that it advances higher in the current accumulation range to rest the 10.500 level once again and finally moving above it which is possible but in fact, bitcoin is definitely oversold in the condition it is trading currently and a correction cant is kept aside in such a condition as many people still in the market and did not sold already. What is also interesting is that bitcoin is trading at 50% from its all-time-high which normally is a level where high resistance comes to the surface and the price shows a downturn or the not that likely layout the price just moves above this 50% range to advance further.
The next times will decide where bitcoin is heading and if there comes a smaller then bigger pull-back/correction or if bitcoin manages to hold the level to visit higher ranges. When comparing this situation to the stock-market, it is also in a state where it does not has confirmed any bullishness on the long-run and as the rallies till now aren't fundamentally backed by real economy data a possible second wave of corona can affect all global markets as it has done in March this year, for bitcoin this means it can result in a heavy pull-back to the before-mentioned levels, but when there comes some good data coming up the next weeks and the infections going back with healthy real economy numbers this can affect the markets in a positive way, we will see where the journey has its destination and therefore it is highly important to be prepared on the possible scenarios with the right setup in the market.
In this manner, thank you for watching, support for more market insight, have a great day and all the best to you!
Enlightenment is under our feet as well as over our heads.
Information provided is only educational and should not be used to take action in the markets.
CME institutional traders’ net position remains similar to the level in mid-February 2020, and it has been dropping significantly since BTC attempted 10k. This makes it very hard to argue the short-term bull side.