Bitcoins, Pierces Major Trendline, Next Bear-Trap Or Breakdown?!

Hello Traders Investors And Community, welcome to this update-analysis where we are looking at bitcoins 12-hourly timeframe, the recent events, the current price-structure and what we can expect from bitcoin the next hours and days. As I mentioned in recent analysis it is highly important for bitcoin to hold this significantly meaningful lower boundary of the huge channel bitcoin is trading in otherwise the possibility for bearish pressure to the downside increases, if you did not saw this analysis I highly recommend that you watch it when going to my account. For now, bitcoin pierced the lower boundary and fell below the 120-EMA (in orange) which is not fully bearish at all but can indicate more bearish pressure to come when bitcoin does not stabilize successfully above the trendline again.

As you can see in my chart bitcoin currently trades still below the lower boundary of the channel which is an important situation right now because here has bitcoin to decide either it shows more bearish pressure or has the strength to move above and stabilize within the overall rising channel again. On the bearish perspective, it is centrally meaningful to note that bitcoin already fell below the 120-EMA (in orange) and below the lower boundary which is not a bullish sign at all, the only thing which can save bitcoin from its bearish future here is a bull-trap scenario similar to this scenario seen at the 11th of May as you can watch in my chart, such a bear-trap scenario can sustain a second time which can provide further movement in the overall rising channel.

Overall we can take note that bitcoin will show more bearish pressure signs sooner or later but the big question now is if bitcoin manages to move above resistance and go on before moving back down or if bitcoin is just consolidating to form the next heavy lasting leg to the downside. Therefore we can divide the current situation into two possible scenarios with the proper outcome to play out rightfully which can be traded successfully when it confirmed suitably. The first will be when bitcoin manages to move above the lower boundary again and form decent bullishness there to test the remaining upper resistance and the second will be when bitcoin confirms the lower boundary (currently trading below) as resistance and sets up to form another leg to the downside.

Compared to many altcoins bitcoin is currently still a stronger part in the whole environment as the breakdowns seen where not that heavily adjusted and devastating as seen in many other trading pairs but besides that bitcoin just gave off many important support levels and is trading below them which is certainly more bearish. For now, it is important to keep patient and wait on the proper confirmation to enter the market with a good opportunity and high possible setups otherwise the market can be traded on the speculative side but as this happens too often these days this is not a wise option as it is almost always the best decision to wait on proper confirmation before entering the market.

In this manner, thank you for watching, support for more market insight, have a great day and all the best to you!
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Information provided is only educational and should not be used to take action in the markets.

Comment:

Initial analysis according the subject which played out so far. (12-Hour Timeframe)