Breakout Of The Downtrend-Channel Suggesting Further Increase

VincePrince Updated   
Hello Traders Investors And Community, I hope everybody of you is doing well in this volatile market-environment we are facing these days, as I suggested in my analysis about bitcoin we have been trading in an important downtrend-channel which will determine the further outcome of bitcoins price action and that has confirmed right now, as I also pointed out we have a point of control where the volume is the biggest, this point of control serves as an important support/resistance level and now we confirmed it as support, the bullish scenario I mentioned confirmed, but that does not mean we are fully out of the woods with bitcoin at the moment as I showed in my middle-to-long-term-analysis about bitcoins further price action, on the middle-term we still have strong resistance levels, if you didn't saw these ideas I recommend that you go to my account and check these out to have a full-depth overview about the current multi-timeframe picture. It is always wise to look at different structures in the market to have a picture of the highest possible scenarios developing forward in the markets!

Now we can see that bitcoin made a bullish breakout of the falling downtrend-channel this is suggesting that the downtrend developed before is now over and a new bullish trend established on the short-time-frame, for now, it is only the shorter time-frame, this is very important to keep in mind because bitcoin has still significant resistance-levels above the head which will also be respected as these when touched. The next time we can expect a second confirmation of the downtrend-channel, therefore it is highly possible that we visit the point of control again where we have the highest volume otherwise we have the next support at 6910 to 6930 as you can see it in the chart, together with the falling downtrend-channel this level will build a bullish confluence-zone when touched, so keep an eye on that. After that second confirmation, I am expecting the next leg to the top of the structure, the next important resistance-zone is the zone between 7360 and 7470 which will highly likely confirm as the proper resistance when we visit this area, on the daily chart there is also the 650-EMA which serves at an important resistance-line. After that pull-back in this range played out it is very very important for bitcoin to hold the range between 7130 and 7370 otherwise we can move lower when these levels do not confirm as steady support levels after the pull-back, after visiting this area it is possible for bitcoin to move higher but as we have high resistance in this area it is important that we get the right confirmation, therefore we have to look on further signs in this area.

Great now it should give you a good overview of the current situation with bitcoin on the short-term, remember that we are not out of the woods at all in the middle and long-term as I already show in a recent analysis. I see many people calling for the moon, this cant be the right approach and is more speculation then elevated market-observation because we are still in an overall weak up-trend and as we approaching heavy resistance-lines the trend can always fall back to bearish therefore we have to look at the chart with a clear head and elevate ourselves above the mere speculations. Today's markets are literally highly complex and there are many things which have to be considered therefore we cant say this scenario or that scenario happens 100 % for sure, there are always possibilities in the markets playing together and creating the overall big picture in which we can follow the given opportunities when they arise.

In this manner have a good day and rest of the weekend ;) Feel free to support for more market insight.
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ANALYSIS UPDATE: BITCOIN moved forward with a strong bullish breakthrough above the initial resistance levels from where it moved on with accelerated bullish dynamics.

Especially in this situation, the dynamic marked a major changing point in the market sentiment and conditions from pandemic crash levels into bull market levels.

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