Bitcoin has recovered from the annormal corona breakdowns seen this year as it moved above the 100-EMA on the basis so crucial for the development, these movements were the most breakdowns seen in bitcoins history and that is why it was very worthwhile that bitcoin managed to form this meaningful step above the 100-EMA again, nevertheless in a more bigger perspective bitcoin is moving in this massive ascending-channel-formation where it still has the upper resistance and supply lying there around the upper boundary coming together in this coherent short-entry-cluster marked in red, this cluster is lying in the accelerated-supply-zone between the 2017 high and the 2019 high which was already origin of heavy bearishness seen in 2019-2020. The next times a rally to higher levels can be expected, this rally however will run directly into the resistance layers lying there marked in my chart where this strong supply is lying which can be the initial reference point for a pullback to the downside, these resistance layers also ending with the wave-count finishing in this level.
Especially when looking on the upcoming economic events like elections or the second increase in corona from which many scientists is talking of these determinations will be critical and it has to be noted that when there comes a massive corona increase or other important measurements within the corona policies such breakdowns arent far from sight and can even invalidate possible rallies, this is why these rallies should not be overvalued for now as we have seen how fast the market can reverse back in 2019 as approaching the supply-zone. From a technical standpoint, the resistance layers above are likely to produce the pullbacks seen in my chart which will firstly lead to the initial-short-target marked in my chart at the 35-EMA in black, when bitcoin does not manage to recover here bitcoin will move on to drop further to the 100-EMA in red matching with the middle-line-support which is extremely important to hold considering any solid continuation because when bitcoin does not hold this levels sustainably it will increase pressure extremely within the pull-back-extension-zone below the 100-EMA and middle-line supports even taking a new test of the lower boundary into considerations. Now as many people becoming already extremely and point bitcoin to reach astronomic levels in just two weeks this is where we need to do not overspeculate the market with illogical approaches because this is just what smart money operators and market makers on the other side waiting for. In order to assess the market properly, we need to see what is going on there and yes Bitcoin established some good recoveries from the corona breakdowns but it is still not yet fully this is why the perspective especially when looking at the resistance layers above should not be kept by side here, therefore, it will be interesting how bitcoin will develop next times the final wave leading into the strong resistance above and how it will react under the suggested approachments.
In this manner, thank you everybody for watching the analysis, have a good day and good weekend, very good contentment for everybody who is supporting, all the best!
Information provided is only educational and should not be used to take action in the markets.