Bitcoin, Confirmed Outside The Flag, Continuation Ahead!

Hello Traders Investors And Community, welcome to this update-analysis where we look at recent events, the current price-formation, and what we can expect from bitcoin the next days and hours. The last times we saw high volatility to the downside not only on the higher timeframe but also on the lower timeframe, as I discovered there are some meaningful signals which have altered the overall picture in bitcoin and can determine the outcome substantially. Beside the distributional events bitcoin is currently providing, which I recommend you to watch when going to my account we have other significant technical signs, therefore we are looking at the 4-hour local timeframe.

The huge channel which you can see in my chart marked in blue which was suspected as a bull-flag now confirmed as one to the downside with heavy volume and volatility, first of all, it is important to notice that this is an increasingly bearish sign which can lie the ground for the more bearish decline in the near prospects. As we broke the bear-flag to the downside the two targets you can see in my chart are confirmed now and will be reached after we fall below the 9060, at the moment it is given within the high likelihood spectrum that these targets are reached when we break below, there is however a small percentage probability that this does not happen but it is highly marginal at the moment.

As bitcoin found some little support at the moment and forming a smaller consolidation movement it is possible that we test the lower boundary from the channel of the bull-flag again to confirm it successfully as resistance, therefore, we need to confirm in the best case scenario below the 20- and 55-EMA you can see marked in my chart with blue and red above these EMAs we have also the 50 % Fibonacci-resistance which is building a solid resistance level in this area. Counting all these factors together we have a strong resistance confluence-zone in this area which will be realized when bitcoin confirms bearish in this level and turns to the downside to reach the overall targets we activated after the bear-flag breakout.

The whole cryptocurrency is at the moment either in consolidation or decline with increasing pace, in such environments it is important to stick to the rational trading approach and do not overspeculate the market not to the upside nor to the downside. Globally speaking we see a decline in stock-markets resulting out of new corona-fears and the huge discrepancy between the real economy and stock market economy which can have an effect on cryptocurrency similar to those volatile market moves we have seen in March and April. We will see how it is playing out and take advantage of possible opportunities arising further.

In this manner, thank you for watching, support for more market insight, and good weekend!

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

Comment:

Bitcoin is consolidating below the EMAs which is rather weak at the moment and can indicate volatility soon.