Here Is Why Bitcoin Is Not Yet Ready To Move Above Resistance!

15 Ogo 2020

Hello Traders Investors And Community, welcome to this fundamentally important analysis about bitcoins weekly timeframe perspective. The last week's bitcoin confirmed heavily above the huge 10.000 - 10.500 USD resistance with a protracted bullish move where it is now consolidating between the 11100 and 12100 levels where also other important factors coming together. The next times will be decisive and will show if bitcoin has the strength breakout the consolidation and move directly above resistance which is a very unlikely scenario currently or if bitcoin firstly forms a correction when not bigger pull-back before approaching this level again which is a much more possible outcome at the moment as I detected in my analysis.

Resistance-Cluster:
As you can watch when looking at my chart is that bitcoin approaching this preliminary significant rising resistance-line which confirmed already successfully several times in the past as a solid and successive Support/Resistance-Level, the fact that bitcoin stopped at this level and also confirmed the 11900 - 12100 resistance it has on the smaller timeframes bearish make this level a strong resistance-cluster marked in my chart in red. It is possible that bitcoin takes this resistance directly out and moves higher but this possibility is currently extremely marginal as bitcoin is also still overbought, it is more likely that bitcoin firstly confirms bearish in this range and shows more downside pressure over the next days and weeks to come.

Back-Up-Cluster:
The back-up-cluster you can watch marked in my chart in the blue area is consisting out of the two descending trendlines formed by the tops in bitcoins established price-actions. Furthermore, it consists of the Fibonacci-supports 23.6 and 38.2 it has in this level providing additional support in this structure and also the CME-gap level which is a high possible level to reach as bitcoin has shown this several times in the past with successful gap-fills. At least there is also coming the 60-EMA, all these factors making a high-potential back-up-zone there where bitcoin has a great likelihood to stabilize and move up again, when the bearish signals coming in this level needs to be elevated as the first base of meaningful support.

Conclusion:
Bitcoin is in a situation where it is still not ready to move fully above resistance and higher, before this the correction seen in my chart is likely to show up which can be used as a potential accumulation-zone for smart-moneys. This pull-back does not mean bitcoin is completely bearish as there are great potentials to back-up, when this happens and bitcoin confirms it as solid support it has potential to move higher again, but when bitcoin falls below this level the possibility for increased downside is given and should not be ignored in this case, therefore it is important to look what bitcoin will do when the levels are reached. It will be highly interesting how this whole structure and mechanisms playing out.

In comparison to the stock-market which has also shown high declines and downside volatility due to corona this year, which also recovered similarly to bitcoin we can take note that bitcoin reached higher levels and pre-crash-conditions faster than the stock market, when looking at the major S&P it is now taking out the highs established before the corona crashes which bitcoin already did. When looking at this structure we should keep in mind that new corona measures due to an increase can follow up in selling pressure similarly to these seen this year already affecting all global markets otherwise there is no barrier for continued growths given when bitcoin has corrected and stabilized in the range.

In this manner, thank you for watching the analysis, support for more market insight, good weekend and all the best!
"Prospect is the ingredient of determined prosperity."

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