VincePrince

BITCOIN, Setting Up For Determined Breakout With Increased Vola!

BITSTAMP:BTCUSD   Bitcoin / U.S. Dollar
Hello,

Welcome to this analysis about Bitcoin , we are looking at the 4-hour timeframe perspectives. In the recent days and weeks, Bitcoin moved into a more protracted consolidational and accumulational range on lower timeframe perspectives as the 4-day timeframe. It was always shown in historical price-data that after such a movement of decreasing volatility and decreasing volume a breakout either to the up or downside occurred with the accelerating volatility , spread and volume , it is important to consider that this is also likely to happen with Bitcoin here as the price-action can not go on forever in such a low volatility range. In this case now I discovered important signs that indicate an upside-breakout incoming within the next time.

Channel, Moving Average And Volatility Range Structure:
When looking at my chart now we can watch there how Bitcoin formed two important channels here, the first is this massive global ascending-channel-formation and the second is this faster moving ascending-channel which resulted out of the breakout above the upper-boundary of the massive ascending-channel. These two channels building exactly one intersection which also the 90-EMA marked in blue crossed and Bitcoin bounced exactly in this intersection of the ascending-channels and the 90-EMA, within this bounce Bitcoin showed up with this initial high volatility move to test the main resistance at 36600. This is a very considerable structure for an initial bottom here as the bounce from the intersection level determines strong support in this zone.

Oscillator Development With The Historical Low Momentum And Stochastic RSI:
With considering the indicators such as the stochastic RSI it is also good to look at the weekly timeframe perspective as there it is marked that the momentum recently reached an all-time-low and is consolidating in this range, the interesting thing is that the momentum on the lower timeframe 4-days perspective already increased and appoints the 0 levels giving an indication that this can also follow on the weekly timeframe . Besides that the stochastic RSI is now consolidating since a longer time below the 20 value on the weekly timeframe perspective whereas the 4-day stochastic RSI already moved on and increased. These developments on the oscillator side also support the scenario of a upside-range-breakout coming up in the future.

Upcoming Perspectives And What Can Be Expected:
When approaching the market out of a technical analysis perspective it is always necessary to properly wage the possibilities and different technical factors to come up with scenarios that are possible and others that are less possible. In this case there is a higher possibility given for Bitcoin to emerge with a bullish breakout and testing of previous resistance firstly than a complete bearish continuation to the downside because the supports above which Bitcoin is still holding are just to omnipresent together with the other technical factors such as the tightening MAs which happens above the given supports indicate the upside-breakout to take place more likely compared to the bearish one.

In this manner, thank you for watching my analysis, have a good day, will be great when you support it with a like and follow or comment, all the best!
"There are many roads to prosperity, but one must be taken."

Information provided is only educational and should not be used to take action in the markets.
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Comments

Great one!
350 coins
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dozens of failed btc longs in ur account and u still dont give up. you must be a life coach about "never giving up" . You are an inspiration. eventually one of your longs will work and voila!! you will be a legend.
+12 Reply
Gambling burakb
@burakb, Funny stuff! Personally I like to see possibilities from multiple angles and Prince Vince always states valid points and considerations!
+7 Reply
@Gambling, No, he does not. He creates TA to fit his bias.
+4 Reply
@burakb lighten up captain happy
+5 Reply
Thanks for sharing your vision again. I'm always impressed by your ideas. I would like to point out there is less and less volume, that results always in a bearish breakout. I'm very careful.
+10 Reply
Shawlkie Amsterdamgenieter
@Amsterdamgenieter, I'm sure less and less volume doesn't always result in a bearish breakout. You have to consider more indicators than just volume. Case in point 31 December '19...low volume (like now) and yet the breakout was bearish.
Reply
@Shawlkie, thanks for your reminder. I guess you have a strong point. And it’s indeed true low volume results is not always a bearish breakout. This is such a strange market at the moment, its full of surprises ;-)
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