Here Is Why BITCOINS HS-Formation Has Greater Bullish Prospects!

Hello Traders Investors And Community,

Welcome to this higher-timeframe-analysis about the detected head and shoulder formation firstly on the daily timeframe where I mentioned the two possibilities and ways of confirmations of the head and shoulder formation I detected bitcoin is forming, if you did not see this analysis already I highly recommend it to watch to have a full-depth-overview. In this analysis now we are looking at the weekly timeframe perspective and I discovered some worthwhile signs and signals which making the bullish breakout and confirmation of the head and shoulder formation more likely at the end of the day, these deductions mainly base on the other technical factors and structure bitcoin is building, therefore, I point out the more possible bullish scenario in this multi-timeframe-outlook adding coherently up to the former daily timeframe-perspective and the things measured there.

Head-And-Shoulder Structure:
As you can watch in my chart on the weekly timeframe bitcoin is building this fundamentally important head and shoulder formation above the 20-EMA marked in blue which is strong support in this case as the price already bounced there several times in the past, besides that bitcoin is still trading above this descending-support-line marked in red where it not only has solid support when it visits it again but also bounced there the last weeks properly. Furthermore, the bitcoins movement above this structure diminishes in volatility which gives the bulls more room to stabilize and set up to confirm the formation upward. Taking all these factors into considerations now bitcoin has a higher likelihood to confirm this massive head-and-shoulder-formation to the upside than to the downside as there are several technical supports holding the trend to the upside.

Outlook And Validation:
Now as bitcoin printing the higher possibility to confirm its head and shoulder formation bullish to the upside this scenario will confirm properly as already suggested above the 11150-11350 level, for this bitcoin has to close above it on the daily timeframe and then also on the weekly timeframe to form a pullback with the stabilization and further continuation, after that a move above the descending dashed grey trendline seen in my chart will fully validate the head and shoulder formation and activate the target zone seen in my chart between the 15700-15800 level. When bitcoin follows these steps rightly in the structure there is the high potential given that it will reach the head and shoulder target zone which will also complete the wave-count with the final wave 5 after this has been done there is a pullback awaiting with a possible entry in the target-zone.

Next Outcomes:
What is often seen in today's markets is that after a certain target of formation has been reached the price reverses into the opposite direction and forms a counter-reaction, this mechanism is strengthened when there are other technical factors underlying it like in this case with the reach of the target zone bitcoin will also end the wave-count and run into the resistance, therefore, a pullback after the targets were reached is a serious scenario to be considered, the first immediate-pull-back-zone will be at the 11500-11800 level where supports lying and bitcoin has the possibility to stabilize again when this does not happen and bearish weakness increases further after the initial pullback bitcoin can form a pull-back-extension which has the potential to travel to 8100-8150 to form a protracted pull-back, however till then the further developments need to be elevated.

In this manner, thank you for watching, good day my friends, and support for more market insight.
"Forecast is the ingredient of good fortune."

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

Comment:

Head-And-Shoulder-Analysis On The Daily-Perspective: