Bitcoin, Fake Breakouts, Crucial Zone Of Indicated Return!

Hello Traders Investors And Community,

Welcome to this analysis where we are looking at Bitcoins 6-hour timeframe perspective, Bitcoin has reached a level where it is producing one fake breakout after another always pulling back into the previously established range again, such movements are normally seen after a bigger reversal to the downside can finally emerge. Currently, Bitcoin already produced some smaller of such fake breakouts and two bigger ones forming the ascending-resistance-line, the upcoming times a third fake breakout can be the crucial source of a bigger pullback and exaggerated bearishness as the trend struggles with the establishment to the upside, this is why we should not underestimate the bearish side of things here and be prepared of the next fake breakout to emerge to do not get overwhelmed by the bearish volatility when this is finally setting into the structure.

When looking at my chart you can watch there Bitcoin trading within this huge ascending-channel-formation with the upper and lower boundary already touched several times, the next times when Bitcoin moves into the lower boundary it is likely to produce an up move from there. Besides this channel Bitcoin is also forming this preliminary significant ascending-resistance-line marked in black which produced the two last major fake breakouts, furthermore, the indication is given by the last two major fake breakouts that Bitcoin moves into the 1.2% extension of the previous wave to the upside where it reverses and finally comes up with the fake breakout that is pulling back into the range again, a highly similar structure can be also seen in the environment now when Bitcoin moves higher it will directly lead into these important layers lying there.

The upcoming times will show how the third major fake breakout can emerge similar to the past two ones, when this third major fake breakout shows up with a strong reverse in the structure it is also more likely to produce a bigger pullback which will fully show up when Bitcoin moves finally below the lower boundary of the ascending-channel-formation, such price-action will indicate bearish pressure to continue minimum to reach the 100-EMA marked in green in my chart. For now it is important to watch out how Bitcoin approaches higher and how this move into the suggested zone will look like, either way we should not underestimate this third major fake breakout possible to show up when Bitcoin approaches the resistance again.

In this manner, thank you, everybody, for watching, have a good day as well as good trading, all the best!
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Information provided is only educational and should not be used to take action in the market.