Bitcoin, Test Remaining S/R-Range, Preliminary Important Level!

Hello Traders Investors And Community, welcome to this fundamental important analysis where we are looking at recent events, the remaining price-structure, and what we can expect the next times from bitcoin. The last hours and days we saw increasing supply and therefore bearish pressure entering the market, not only the cryptocurrency-market but also stocks and forex due to corona-crisis-fears increase and a shaky real economy which sprang over on the global markets. The big question now is if this was just a mere pull-back to be ignored or a groundstone for more decline. Taking these factors into consideration there are important levels in bitcoins price-structure that should be acknowledged and can play a big role in the further outcome of bitcoins price-action therefore we are looking at the daily perspective.

As you can see when looking at my chart is that bitcoin broke recently the higher low trendline to the downside, this was an expected mechanism which I mentioned already in past analysis, this trendline should sooner or later brake to the downside but as bitcoin has currently some important support levels which are it testing this can just be a fake breakout to be exact a bear-trap which will be when bitcoin shows solid support in this area, this will be activated when bitcoin holds sustainable the 100-EMA which you can see marked in orange within my chart and the falling support-line which is marked in blue in my chart, these two levels serve currently as support and it is important to hold them for a serious recovery, otherwise when bitcoin falls below these levels this will invalidate the support and a new paradigm to the downside can be set.

Overall we have an environment for bitcoin where bitcoin has to prove if it can hold the levels of support and move up higher again. In comparison to the rest of the market, bitcoin is currently stronger than the altcoins where many broke heavily to the downside and provided harsh bearish declines where bitcoin still holds important support levels. After a possible stabilization in these areas we can examine and look at how bitcoin is developing to take appropriate action, as for now it is important to wait for some final confirmation which will show up in the bullish case when bitcoin crosses above the lower high trendline and in the bearish case when bitcoin falls below 200- and 100-EMA and therefore also below the falling-support line in blue but as these are strong support levels at the moment this is an unlikely scenario which has to be proven and when it sets in to confirm with the needed high volatility correctly.

According to opinion there are many people calling for the complete moon and that correction is over already, this, however, cant be stated for sure now and must be confirmed properly as it is always most often the case, therefore we should always keep the reverse scenario in mind and not be unprepared when it sets in as there are global factors which can proof volatile especially in the still ongoing corona-crisis in which beginning we saw heavy declines in all important global markets. Therefore the bearish middle-term scenario should not be kept aside which not means that bitcoin is completely bearish but it can indicate that bitcoin has to proof the remaining resistance like it is the case at the moment, therefore we should not be naive and think that the market just moves in our direction this means to wage the possibilities and opportunities arising and do not take the hypothetical abstract approach like to often seen these days.

In this manner, thank you for watching, support for more market insight, have a great day and all the best my friends! ;)
Success is not final; failure is not fatal: It is the courage to continue that counts.

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