Welcome to this analysis where we are looking at Bitcoin and its 4-hour timeframe perspective. The last days and weeks Bitcoin almost exaggerated with bullishness to the upside and formed significant upward surges onto the point where it is likely to form a new all-time-high as already mentioned in previous analysis, at this time it seems likely the market is only and many speculative traders moving long into the market and yes there is still room in the structure for Bitcoin to move higher and form the all-time-high in the upcoming times nevertheless we should not underestimate the other important signs as I discovered crucial signals with which Bitcoin can change direction if it shows up with the decisive price-action, therefore I detected all the important levels and likely outcomes we should consider with Bitcoins current structure and the ongoing events to happen further.
Ascending-Wedge-Formation And Bearish-RSI-Divergence:
As when looking at my chart we can watch there how Bitcoin established this strong ascending-channel-formation with the boundaries marked in blue and besides that the coherent wave-count established already completed waves A-D, as Bitcoin now approaches the last wave E in the structure this is likely to emerge from the current back-up-cluster marked in my chart in blue where Bitcoin has the local support as I suggested already previously Bitcoin also already completed a head-and-shoulder-formation here. All these factors suggesting the final wave E to establish and therefore form a new all-time-high as this is marked in my chart nevertheless as this new all-time-high will emerge Bitcoin is approaching the upper-resistance and also the fact that this price-action will complete the whole cycle will define a reaction when Bitcoin approaches the major-resistance-cluster marked in my chart in red, together with the formed bearish-RSI-divergence Bitcoin has a high possibility when completing this price-action to form a pullback from there firstly visiting lower levels, when such movements show up this will lead to a massive bear-trap in the structure and Bitcoin will be likely to show up with increased pressure.
Emerging Bull-Trap And Upcoming Perspectives:
The upcoming outcomes will be extremely crucial for Bitcoin as the completion of the formation can lead to a strong reversal under the suggested circumstances, besides that Bitcoin is highly overbought and it is logical that exponential growth can not go on forever even when many people are and believe in the bull market we should see the things logical and do not underestimate the likely emerging bull-trap here and the considerable bubble Bitcoin is building as this is also seen within the stock market, the corona crisis is still going on and there did not yet developed any serious changes in real economy and the market as the real economy is still damaged by the crisis. Besides that such traps Bitcoin is likely to show up with already occurred in Bitcoins past and they are also not seldom seen within other asset classes. For us as traders, this means to be prepared for a possible swift in trend when Bitcoin moves on with the suggested circumstances, and as the past has already shown changes in direction can happen within cryptocurrency faster than expected.
In this manner, thank you for watching the analysis, have a good day and also good trading, all the best!
"Prospect is the ingredient of good fortune."
Information provided is only educational and should not be used to take action in the markets.
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Yeah Im agree with you, but I have a question ...
What if btc break resistance of the rising ???
And about bearish divergence ... we were in bearish divergence since 10k ... if you check daily you can see that rsi made a home for it self in OB :| so in my idea ...
We are gonna see 20 and maybe 22 and after that btc will die for a while ... (big range or correction to 18k and 19k area)
Thank you for your great ideas my friend.
20 and 22k are possible now ...