Bitcoin, Trades In Key Descending-Channel, Likely Steps Ahead!

BYBIT:BTCUSD   Bitcoin / U.S. Dollar
Hi my friends,

Welcome to this fundamentally important analysis about Bitcoins price-action-developments, we are looking at the 4-hour timeframe perspective. Bitcoin since it confirmed its two tops has formed important price-actions as it is forming volatile movements to the up and downside in a major formation I detected which will be the determining source the upcoming times, currently, it is important to note that the bearish possibilities aren't fully out of sight and that there is still serious supply lying within the market which should not be underestimated as Bitcoin has also overbought conditions within the higher timeframes as well as the major indicators, therefore I detected all the important levels and likely outcomes we should consider with Bitcoin , the formation currently forming here and how this formation can possibly complete and turn out in some solid potentials.

Descending-Channel-Formation And Structural-Development:
As when looking at my chart we can watch there how Bitcoin the last times formed this massive descending-channel-formation with the lower- as well as upper-boundary marked in blue, besides that Bitcoin developed this coherent wave-count within the formation where it already completed waves A-D with the wave D currently moving into this strong-upper-resistance-cluster marked in red in my chart where several resistances coming together and therefore has a high likelihood to show up with the bearish pullback within which will actually be the origin of the final wave E to the downside which completes the whole wave-count. This finalizing wave E will divide into an ABC-wave-count similarly as Bitcoin has shown it in the waves before where Bitcoin is firstly going to test the lower-line of the channel and after that move on to the lower-boundary.

Upcoming Prospects And Potential Validations:
When Bitcoin completes the whole wave-count the final wave E is likely to move into the lower back-up-and-breakout-origin-cluster marked in blue in my chart and lying within the lower-boundary and also matching with the lower-support as well as the 300-EMA within this zone, this cluster has some good possibilities to indicate a bounce which then has the potential to convert into a channel breakout when Bitcoin manages to increase with bullish price-action after bouncing within this level. This breakout will emerge when Bitcoin manages to move above the upper-boundary and validate it as support as it is marked in my chart, when such price-action has shown up Bitcoin will firstly test higher levels of resistance within the structure where it has the strong resistances lying above, it will be one more step into acquiring possible bullishness however the bearish perspective is still in the room as Bitcoin can also show up with another pullback similarly as it has done within this range already once or produce a wave-E-extension within the descending-channel-formation, for now, we need to assess how strong the pullback becomes and if the stabilization can establish properly.

In this manner, thank you for watching the analysis, have a great day and weekend, all the best!
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