Bitcoin, Approaching 10000 Again, Outcome Will Determine Target!

VincePrince Updated   
Hello, Traders Investors And Community, welcome to this analysis about bitcoins actual price-structure, there are some important and meaningful mechanisms currently in play which will determine bitcoin further outcome the next hours and days, we are looking on the daily time-frame and there are some significant observations I made in the current bitcoin structure. The last time we saw bitcoin approaching the fundamental resistance level at 10.000 and falling back to form a bearish pull-back, this level has such an importance in the structure because we bounced several times to the downside there and now approaching it a third time. At the moment bitcoin is coming back to test the major 10.000 USD resistance again but as the past shown to us, this level can cause a heavy bearish breakdown to the downside.

When looking at my chart you can see that bitcoin is trading in this huge huge uptrend channel which formed from the low in 2018 and the high in 2019, this is the actual predominant channel we are trading in and it had an unnormal corona-virus breakdown to the downside which you can see marked in my chart due to the corona-virus fears infecting all major global markets together and showing especially in bitcoin volatility never seen before. Last week the bitcoin price recovered from this unnatural and highly volatile breakdown back into the channel where we are trading now and approaching this huge resistance. As we saw the last days the price already confirmed bearish to the downside at the resistance and is now approaching it again.

What we can examine now is that bitcoin is building a possible range here, which will break either to the up or downside. When we are looking at the past breakdowns in the psychological 10.000 USD level we can see that as consolidation-range formed before the second key breakdown. Therefore we need to keep in mind that this can also happen in the range we are building now when bitcoin does not succeed to travel above the 10.000 and especially the 10.500 level. When considering the bearish scenario a definite break of the 8100 levels to the downside will cause more bearish pressure at least to the 7400 and this case the fact that we will trade again in the bearish corona-channel will increase the probability for a continuation to lower levels.

In determining the bullish scenario it is important that we need to take out the overall 10500 levels sustainable to the upside with good volatility and volume otherwise it can still be a bull-trap catapulting bitcoin back in the range. The overall neutrality level which you see in my chart will be in play after this scenario and bitcoin has definitely more room to move higher in the structure when it confirmed. This can cause a new potential bull-market which will be in play and building a coherent set up with the overall structure but this needs to be confirmed with a clean break to the upside, the full confirmation will be in play when we exceed 2019 high you can see in the structure, I see many people calling for the moon but this is an illogical approach because we did not see a supportable confirmation and before that happens we cant call bitcoin for the moon.

At the moment we need to see if bulls are strong enough to take the 10500 levels out or fall back again. Both scenarios can be traded properly and as I always say it is preeminent to wait for the proper confirmation in the markets to place the best possible trade. In this case the confirmation will be realized on the bullish side when crossing above the 10500 levels, this can be traded with an aggressive entry after the breakout or a conservative entry wait on confirming the level with a pull-back and the needed volatility. The bearish breakdown can be traded with an immediate entry or an entry after confirmation, in this scenario, it is also possible to wait for more downside and potentially add to the position because we will see definitely more downside when the 8100 level is broken.

Thanks for watching, support for more market insight and all the best!
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Information provided is only educational and should not be used to take action in the markets.
ANALYSIS UPDATE: BITCOIN continued with the major critical confirmation triangle completion and confirmation developing massive bullishness till the final breakout emerged pushing the price action into new higher spheres.

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