VincePrince

Bitcoin, Wedge-Formation, How It Converts Into A Breakout!

BYBIT:BTCUSD   Bitcoin / U.S. Dollar
Hi,

Welcome to this analysis about Bitcoin , looking at the local 2-hour timeframe perspective. As Bitcoin on the more global perspectives moved on to test important remaining resistances from where it firstly pulled back and is now somewhat setting up for further price-action I discovered a decisive formation Bitcoin is now developing that will be worthwhile in the upcoming determinations especially when it completes it can show up with some valuable breakouts that can possibly lead to new highs, therefore it is necessary that Bitcoin establishes further with the right alignments and does not indicate price-actions that can invalidate the whole structure and formation again.

Structural Developments:
When looking at my chart we can watch there how Bitcoin has now developed this main descending-wedge-formation marked with the boundaries in blue, in this formation Bitcoin has a coherent wave-count in which it already completed the waves A to C in the schedule and is now setting up to form the wave D that will move on and directly run into this remaining resistance-cluster Bitcoin primarily has in the upper-boundary of the formation, when Bitcoin pulls back in this cluster bearishly to the downside it will be the origin of the wave E to the downside which will finalize the whole wave-count and will approach the lower levels of support from where the whole formation can complete as the wave-count finalizes in supports.

Upcoming Determinations:
With Bitcoin trading in such a constellation, it is important to keep patient and wait for the conclusive price-actions that will finally complete this formation, therefore it is necessary that Bitcoin sufficiently bounces within the lower back-up-cluster and when this happens with Bitcoin bouncing above the upper boundary of the formation the whole formation will be completed with activation of further continuations and Bitcoin will move on to test the remaining upper resistances again. Taking all these factors into the consideration it is necessary that Bitcoin does not show up with increased bearish pressure again because such a price-action can invalidate the whole formation with Bitcoin moving below the lower levels of support.

In this manner, thank you for watching the analysis and great contentment for everybody supporting, all the best!
"Trading effectively is about assessing possibilities, not certainties."

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

Amazing idea
+5 Reply
going up?
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Very nice analysis
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I like where this is going :)
Thanks for the analysis.
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Good work
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thank you for your work!
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Thanks for your great analysis, appreciate that!
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Post your comments, questions, and ideas about BITCOIN here.
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@VincePrince, great analysis vince, just wanna add something fundamentally; btc reserves on exchanges are at all time low. Ive been wondering why we have increasingly lower volumes and lower rsi during this bull run. I think its because of this low liquidity. Exchanges are squeezing contracts to get more btc for otc, miners are holding and instutions are buying every dip. Theres been immense bearish pressure the last few weeks; think of retail jumping into alts and the stronger dollar (at least for a while) but btc never really corrected nor did it really pump. Seems like a massive institutional accumulation right now especially given the loose US policy on inflation of the dollar. Such fundamentals can mess up a “normal” TA. If any; i would expected that futures gap to be filled yesterday... but it seems like theres too much demand and too little liquidity to even get there. IMO: everything is pointing to a prepared breakout to the upside; getting institutions on board before a new leg up; which I expect to start today or by Monday the next week at latest with the Coinbase IPO around the corner; which will definitely happen with a 60+K BTC. Also, last point: if the pi indicator crosses (in the next days) and we have a leg up next week (which is likely) we can say that yes indeed this bull run is different than previous bull runs. Not saying this time we wont get a bear market however; when will the bear market start and we will get inflation (within 12-18 months of qe so almost there from package 1 of 2020) and thus this will extend the bul run. Even Pieter Thiel has a BTC bag now.. not sure if I like that but it does say a lot... What also says a lot: massive selling pressure with massive buying pressure. Huge volume in that 55/56K area; would be hard to break imo. Ok thats it for now, thanks for your analysis! :)
+2 Reply
sofiasofia cryptobullethbtcxlm
@cryptobullethbtcxlm, Great analysis!!
Reply
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