Welcome to this analysis where we are looking at bitcoins 1-Hour Timeframe Perspective, the recent events, the current formational structure, what we can expect the next times and how to possibly handle this and upcoming situation. Bitcoin recently has shown some marginal up moves in the structure where it already build this ABC-wave-count, now as this wave-count has emerged bitcoin currently is testing resistance where a consolidation within the range can be expected, a big question currently is if bitcoin can extend this emerged wave-count or if it will move further in the channel and form a D- and E-wave ahead in the channel, currently it has to be noted that both outcomes leading into a possible short as there are still resistance layers and the pressure did not yet end the big question just will be when and how these pullbacks will show up within this developments and bitcoin destinies.
Looking at my chart you can watch bitcoin has formed this ascending-channel-formation where it has completed the ABC-wave-count and now is testing the upper boundary of this channel, besides that bitcoin has this ascending-trend-line which is holding the bulls above, besides that it was good that bitcoin moved above the 100-EMA which was resistance before. Now taking all these factors into consideration there are two outcomes to expect in this structure of which one has a more likelihood, the first one will be that bitcoin manages to hold the ascending-trend-line and gain strength above it to finally approve an upside breakout which will lead to a C-wave-extension as it is marked in my chart, the other scenario is when bitcoin falls below the ascending-trend-line and moves on to test the lower boundary of the ascending-channel-formation before backing up to the upper boundary again which will lead to a D- and E-wave forming coming into the channel and lying also ground to confirm this ascending-channel-formation as a possible bear-flag to show up.
As bitcoin has already established this slightly more pace and is trading above the 100-EMA as well as above the ascending-trend-line the scenario has a higher possibility here and can be traded properly when bitcoin manages to move above the upper boundary and close there. When this outcome shows up it has to be noted that there are still strong resistance layers above which are likely to show up in a pullback in this manner the market has to be elevated again. Taking up both perspective the extension as well as the further development in the channel both will lead to a pull-back-scenario further in the structure which should definitely not be kept by side here as it is happening to often as the market especially the cryptocurrency market tends to exaggerate this is just where smart-money comes into and taking up the position trades from inexperienced traders, a reason more to not overspeculate things and assess the market in the right manner.
In this manner, many thanks everybody for watching, greatly appreciate all supports, have a good day and all the best my friend!
Information provided is only educational and should not be used to take action in the markets.