Bitcoin, H-S-Formation Forming, Bullish Breakout More Likely!

23 Nov 2020

Hello Traders Investors And Community,

Welcome to this analysis, we are looking at Bitcoin and its 2-hour timeframe perspective, the recent events, the current formational structure, what we can expect the next times and how to possibly handle the situation in an appropriate manner. Since Bitcoin initially showed up with these bearish pullbacks with origin in the 18900 level which we made some good profits with the short resulting out of it, Bitcoin is now forming an important formation that I discovered will be the determining source in the next outcomes therefore I detected all the important levels and likely outcomes we should consider with Bitcoins current structure and the next scenarios to assess.

When looking at my chart we can see there Bitcoin now building this major head-and-shoulder-formation with the neckline marked in blue and the left-shoulder as well as the head already formed in the structure, now Bitcoin is about to finalize the right-shoulder which at the end will complete the whole formation and point to the proper breakout in the structure. As Bitcoin has still solid supports lying there consisting of the 65-EMA and the blue horizontal support the bullish breakout has a greater possibility of 65 % and should be much more expected in comparison to the bearish breakout with a possibility of 35 %. When considering the bullish breakout this will finalize with a breakout above the descending-dashed-trend-line and a close above the resistance-zone marked in red in my chart, when Bitcoin shows up with such price-action here this will activate upper targets with a minimum at 19700 where the market needs to be elevated anew when the targets are reached and it will be important if there comes firstly a reversal which will be not unlikely or a bullish continuation right away which is not the most possible scenario when considering the conditions.

Bitcoin is in a situation where it has to show how it manages further from here and how it completes the more expected bullish scenario in the structure that will show the conclusions further, even though Bitcoin is trading already in overbought zones this does not mean it can move higher and form new highs however the bearish perspective should not be underestimated in any case because Bitcoin is moving into zones where a swift reversal and change in direction can establish more easily and as past has shown this can come faster than expected within the cryptocurrency market, for now, the breakout will be important and this will be an interesting development.

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