BITCOIN, Current Similarities To The Corona-Crash-Developments!

Hello,

Welcome to this analysis about Bitcoin, we are looking at the 4-day timeframe perspective. Since Bitcoin showed up with the heavy bearish breakdowns to the downside it is in a precarious situation however as there already developed important signs of an accumulation and ongoing reversal I discovered meaningful signs that have a very high similarity with the abnormal corona-crash-conditions and the developed recovery. As the market substantially recovered after the corona breakdowns and established lows there are high similarities to the current situation as I detected with highly related developments also from the momentum oscillator perspective, therefore I am looking at the main zones and upcoming developments we need to consider.

As when looking at my chart it is important here to look at on how the market developed during the corona-crash-breakdowns especially with the EMA-structure and the similarities to the current situation in which Bitcoin began to form alike establishments as it was already seen before. When looking at the EMA structure what is paramount here is the 20-EMA in black which actually marked the bearish breakdown beginning within the first breakdown and rebound phase in September 2019 with the 20-EMA crossing all faster-moving EMAs down till the last one as the 55-EMA marked in dark red, this was a false breakout because after that the market recovered with the 20-EMA crossing up above again.

After this first breakdown and rebound phase, the market normally should have been recovered and developed further bullishly above the EMAs however what followed was the next breakdown and rebound phase caused due to the corona-crash which was the source of this second abnormal breakdown and rebound phase. After this corona crash, the market recovered again and the 20-EMA crossed up again. Further important here is the main ascending-trend-line marked in my chart in blue which has its origins within the corona-breakdown-bottom in March 2020 which Bitcoin is still holding and recently bounced again.

Considering now also the Momentum Oscillator which I found shows some meaningful developments in the structure, in this case, the 0 value line marked in black is important because when momentum crosses below or above this line the market is likely to continue into the crossed direction. Also, a major indication is extreme points such as tops and bottoms which are moving below the previously established reference-conditions. It was already seen in the breakdown and rebound phases below that Momentum crossed the 0 line to the downside made a new significant low and after that rebounded to cross above the zero lines simultaneously with the price-action, a similar thing is happening at the moment as the Momentum formed an extreme low below the previous all-time-low and after that rebounded which is indicating the potential momentum and price-action low.

Collecting this information it will be decisive for Bitcoin on how it develops in the near future, therefore, when Bitcoin manages to bounce in the current structure and move on to test the 55-EMA in red this can be the origin and indication for the actual reversal as Bitcoin did the same in the previous breakdown and rebound phases as it first tested the 55-EMA from the downside and then managed to move above it. Together with the ascending-trend-line this can be a realistic approach in the upcoming times. Also from the local structure, this bounce should come sooner or later, what happens after it then will show if the phase can form anew like previously seen.

In this manner, thank you for watching my analysis about BITCOIN and the important similarities in the EMA structure to previous bearish breakdowns and how this can affect upcoming Bitcoin price-action-development, great when you support it with a like and follow or comment, all the best!
"The past, like the future, is indefinite and exists only as a spectrum of possibilities."

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