As you can watch in my chart bitcoin is still trading in this massive formation which you can see in my chart marked in blue, this formation currently serves as the reference point for a or breakout in destiny. As bitcoin at the moment trades above important support zones such as the 400-EMA in red, the 200-EMA in black and the middle line support, which whereby the way resistance levels before that bitcoin now successfully has taken out and confirmed to the upside are important levels which hold the price up to and when they are broken there is a higher possibility given for a continuation to the downside. Now as bitcoin fell onto these levels and testing them as the support we can expect a stabilization in price here with a continued upside movement to test the upper boundary of the massive channel as you can watch it marked in my chart. This test will be an important turning point because it will decide whether bitcoin will succeed in a movement to the upside or show pressure to the downside finally falling apart important support lines and to the downside.
What is important to notice is that when bitcoin manages to move above the huge upper boundary and confirms above the still important resistance there it can cause an increase in price and finally movement in the growth zone you can watch marked in my chart, remember that it is highly important that bitcoin takes out the upper boundary sustainable with a decisive volatile move because when it does not and bitcoin stays in the channel this can indicate more signs and a fall back to previously established levels. Considering this scenario it is highly important for bitcoin to hold on to the 8900 levels you can watch marked in black in my chart because when bitcoin does not hold it and closes below it this will confirm the scenario here and a visit of even lower levels. We will see what the bitcoin is developing to us but at the moment the scenario is more likely as the support levels outweighing the resistance levels and environmental details but we should keep patient, wait for confirmation, and do not just rush into the market.
The current time is a time for bitcoin where it has to decide if the established bullishness seen since the corona-breakdowns can hold on or not, considering this it is important to keep in mind that a possible second wave of infections can hit all global markets similar to the scenarios seen in march this year as the cases still increasing this possibility is not from the desk, in comparison to the stock-market the total continuation and bear-market-invalidation scenario is still not completed for sure as smart-money still staying out of the market this can just be a bigger bull-trap which can also affect the bitcoin price. Technically speaking there needs to confirm several levels to the upside and when the real economy is growing again it will provide a healthy environment for stocks to grow that can affect the other markets also, these decisions will show up in the next months this year and therefore it is important to prepare also for the reverse perspective and a possible environment with more downside pressure as there are still many roadworks which aren't solved at the moment. Now this does not mean bitcoin is totally complete but it can show a possible correction and paradigm-shift on the middle-to-long-term.
In this manner, thank you for watching, support for more market insight, have a great day and all the best to you!
Keep the market past in mind, it can develop profitably in the present.
Information provided is only educational and should not be used to take action in the markets.
Totally agree with the downward channel.
Even though the daily BTC chart does have slight bullish technical signs, more volume is needed for the 10k bullish scenario to play out. Before then, I’ll remain on the short term neutral to bearish side. What do you think of our setup below?