Bitcoin, At A Decisive Intersection, Determining Scenarios!

Hello,

Welcome to this analysis about Bitcoin and the weekly timeframe perspective. In this analysis, I am going to look at the important Ichimoku-cloud structure and the connection to other technical factors that are pivotal when considering the current situation. The Ichimoku cloud was developed by a journalist in 1969 and since this date served as a fundamental indicator to spot the trend-stage either it is bullish, flat or bearish, and also determine potential signals within the market. It is necessary to embed this structure in a broader picture to wage the possibilities rightly and come up with the most possible scenarios to consider, this means to also prepare on upcoming changes in direction as possibilities can alter as well.

At the beginning of the declining market and during the downward movements we have seen increasing news negatively against Bitcoin and Cryptocurrency as governments blocking and restricting Bitcoin and Cryptocurrency mining that firstly pushed the price downward and taking some enthusiasm out of the market, especially hash rate and mining competition decreased, however, it is likely that this mining activity is taken up again in other supportive places, such occupation were already seen. On the other side, there are countries that welcome innovation and structural financial change such as El Salvador making Bitcoin legal tender, besides this country, there are also others considering a launch of Bitcoin as legal tender or something similar. While governments all over the world working on their central-bank-digital-currency projects and testing blockchain-based infrastructure to run the next digital euro or dollar it needs to be realized that Bitcoin and Blockchain technology can not be that bad when governments take advantage of it. All these factors representing the indecisive phase the market currently stays for quite a while however this will change as it was always seen in historical price-action, therefore I detected the important technical factors and possibilities in which direction this increase of volatility will likely lead.

When considering the current technical situation we can see when looking at my chart that the weekly trend remains bullish, this is determined by the fact that Bitcoin still is above the Ichimoku-cloud in green. The Ichimoku-cloud is green because the faster moving leading span A (green line) crossed above the leading span B (red line), therefore the definition of Bitcoins trend is still an upside-trend, this can only change when Bitcoin moves below the Ichimoku-cloud as well as the leading span A crossing below the leading span B. Furthermore, it is shown in my chart that Bitcoin since crossing below this first ascending-trend-line after which the market increased with heavy bearishness Bitcoin moved on to the next ascending-trend-line which established by previous price-actions and has a similar weight as the first ascending-trend-line where the price bounced several times, in fact, Bitcoin already bounced recently within this second ascending-trend-line. Besides that Bitcoin also has the 50-MA marked in blue in my chart matching together with the second ascending-trend-line and building an important support cluster in this structure that can convert into a primary inflection-point. Besides that, it has to be marked that Bitcoins momentum is decreasing for a while which on most occasions indicates a reversal in the structure. All these factors underline the possibility for Bitcoin minimum showing up with a bounce from here that moves on to test remaining resistances, which are defined by the ascending-resistance-line marked in dashed grey in my chart, what happens after that will be shown when the time is ripe.

In this manner, thank you for watching my analysis about Bitcoins trend-development according to the Ichimoku-cloud and what are important factors in this structure, great when you support it with a like and follow or comment, all the best!
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Information provided is only educational and should not be used to take action in the markets.