Welcome to this analysis where we are looking at Bitcoins 12-hour timeframe perspective, the recent events, the current formational structure, what we can expect the upcoming times and how to possibly handle the situation appropriately. Recently Bitcoin has shown increased to the downside where it temporarily found support in the structure in which it is now setting up to test the remaining resistance levels which should not be underestimated here, it is not seldom seen that a new leg follows after such heavy to the downside which does not mean Bitcoin is completely when it shows up however the scenarios should not be kept by side as Bitcoin already established the strong to the downside, therefore I detected all the important levels and possible outcomes we should consider at the moment.
Looking at my chart you can watch there Bitcoin now approaching the strong resistance layer between the 13500 and 13650 level where not only horizontal resistance is lying but also the head and shoulder ending on the smaller timeframes, besides that Bitcoin is still overbought which is playing into a considerable pull-back-scenario. Besides that you can watch in my chart the three marked in blue where each trendline is marking the proper next to hold, currently, it will be the first trendline, when this trendline is broken to the downside we can expect Bitcoin to visit the second trendline where stabilization is possible before a continuation to the upside can finally emerge, when this trendline also do not holds the next one will be pointed which is the third major blue trendline where Bitcoin has the possibility to back-up.
The next times will show how Bitcoin reacts into the first trendline and then moves on to test the next levels in the structure, when Bitcoin finally moves into a pull-back-extension as it is marked in my chart the third trendline will be highly important to hold because pressure will increase again below it, however, the possibilities are good that this third trendline can hold properly and Bitcoin manages to form a reversal from there. For now we should not underestimate possible upcoming bearishness as this will also play into the situation within the stock market as there is the divergence between real economy and market still existing, therefore we should be prepared for possible changes in direction and to the other side which is, in this case, the direction, nevertheless, it will be an interesting journey how Bitocin reacts into the as suggested.
In this manner, thank you everybody for watching, have a good day as well as 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 market.