Bitcoin, Global And Local Levels Crucial For Bull-Establishment!

Hello Traders Investors And Community, Welcome to this analysis where we are looking at bitcoins daily timeframe perspective, events occurred in the last days and weeks, what are the important local/global levels at the moment and what are possible outcomes for bitcoin next times. Since bitcoin showed the heavy bearish breakdowns which were likely to show up as mentioned in my analysis we had this huge global-resistance-line with a high possibility to confirm to the downside, as this happened bitcoin firstly found support at the blue support line and 10000 level, now as bitcoin has provided a smaller and weaker rally it approaches preliminary resistance in the structure which should not be kept by side in any case, as the local trend is still not strong enough there is a higher likelihood given that the local resistance confirms as it, therefore we should not overspeculate it currently and look how bitcoin can stabilize.

As you can watch when looking at my chart, firstly bitcoin is trading in this massive descending-channel-formation marked in orange as the upper and lower boundary already confirmed several times the upper boundary is a preliminary strong resistance which bitcoin approaches the next times, besides that bitcoin has the local-resistance-line in this level as it is marked in my chart in black, together with the upper boundary it is forming a resistance-cluster here marked in red where bitcoin has the possibility given to confirm it bearish to the downside, when this happens and the dashed black trendline bitcoin has in the local level is broken to the downside bitcoin will increase with bearish pressure till there is support found which will be the blue support level marked in my chart, from that on there are basically two possible outcomes with which bitcoin can show up and lead to the next paths.

The first option when bitcoin approaches this blue support is that it bounces there immediately and stabilizes, the second option, in this case, is when bitcoin falls below the support as it does not manage to hold it and tests lower levels which will be the blue rising support line in this case, when considering these two scenarios bitcoin at the end of the day needs to break above the upper boundary substantially and close there to not fall back into the channel again because this can cause a bull-trap where bitcoin firstly mingles into the channel anew and it won't provide the healthy market environment for bullish continuation when bitcoin does not manage to move above the upper boundary immediately and stays in the channel and weakens the blue rising support this can result into a pull-back-extension as it is marked in my chart where bitcoin moves into the red zone below trendline which will cause heavy bearishness and protracted extension.

Bitcoin is in a situation where it has to show how it will proceed after the upcoming pullback and how it can stabilize or extend the pullback as mentioned, what is important is that we do not overextend the current rally and keep the bearish perspective in mind as the pullbacks aren't necessarily over therefore it is important to wait on the properly suggested confirmations, fundamentally speaking an increase of corona can also lead to higher selling pressures together with a stronger dollar upcoming this can also move bitcoin to a more precarious pull-back with extension, bitcoin still is above the pre-corona highs which do not mean it can fall below them again, in this case, we should be prepared to the possible upcoming swift volatile movements to the downside to not get overwhelmed when it happens because this is what smart money operators and market makers just waiting on, we should anticipate it and trade with the right trading-system in this case.

In this manner, thank you for watching, support for more market insight, good day to you, and all the best!
“There is a time to go long, a time to go short and a time to go fishing.”

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