BITCOIN-DUMP-UPDATE, Considerations After The Initial Drop!

Hello,

Welcome to this update-analysis about Bitcoin and the daily timeframe perspectives. What a massive dump occurred here which has a very unnatural price-action, it would not be the first time a manipulated dump occurs within cryptocurrency however as mentioned in previous analysis Bitcoin was likely to show up with the bearish price-action to the downside recently emerged sooner or later which now happened and Bitcoin massively dumped to the downside amidst the legal tender adoption in El Salvador which can now be a factor of initial demand coming into the structure. If you did not see the previous analysis already I highly recommend it to watch to have a full-depth-overview as this analysis is building a coherent follow-up I detected further important signs, structural developments, and upcoming determinations that will determine Bitcoins journey.

As when looking at my chart we can watch there how Bitcoin since my previous analysis has moved above the 50.000 USD mark and formed the final bull-trap above this mark as the bullish momentum was rather weak and Bitcoin did not held these levels in a high-base-formation appropriately the pullbacks showed up which then converted into the dump. What we have also seen with this bounce above the 50.000 USD mark is the bearish fractal Bitcoin already developed before now came across again. Mainly Bitcoin now reached the initial drop-zone marked in my chart in blue between the 42.000 USD and 44.000 USD level which is serving as appropriate initial support from where Bitcoin can build up as already mentioned and expected in the former analysis, nevertheless, it is likely that as Bitcoin now has the 50.000 USD mark as resistance the main pullback from there on firstly establishes.

Taking these determining factors into the consideration it will be highly decisive on how Bitcoin approaches the now psychological resistance of 50.000 USD and if the pullback that is likely to develop from there happens strongly or not so, when the bearish momentum is slowing down Bitcoin will have the ability to complete the normal ABC-correction without an extension above the 42000 USD otherwise when Bitcoin increases further heavily with bearishness this will lead to the wave-C-extension and Bitcoin will test the lower zones. This shows one more time how volatile the cryptocurrency market is and how swiftly it can change direction with market makers or without it is staying volatile and this is why we need rightly assure such situations as traders as we have also managed within the VIP channels making some great advancements on the short-side, not only with Bitcoin, it will be an important development ahead.

In this manner, thank you for watching the analysis, it will be great when you support it with a like, follow and comment for more upcoming market analysis, all the best!

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

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