What We Need To Assess Since BTC Moved Above 12K Resistance!

18 Ogo 2020Hello Traders Investors And Community, welcome to this analysis where we are looking at the bitcoin 4-hour timeframe perspective, the recent events, the current structural importances, what to consider next times and with what bitcoin needs to show up for further continuation. Bitcoin has finally moved above the stronger 12.000 USD resistance which was a really fast move which it corrected now with a pull-back into the range, the bigger question now is if this breakout was certainly sustainable and more upside continuation will follow or if bitcoin possibly visits lower levels in the range again which is unlikely currently considering the strong breakout above resistance but should not be ignored in order to be prepared when it is happening and do not get overwhelmed by circumstances, in this case, I detected some important signs which bitcoin should provide further in order to continue its established pace.

As you can watch in my chart bitcoin is currently testing the 40-EMA in black which is an important support in this structure as it confirmed already several times in past price-action, therefore this is the first significant support to hold here and when it does we can expect the next move to the 12.000 USD level and above again as it is marked in my chart but when this EMA does not hold and bitcon increases with bullish weakness to close below the EMA the next important support to hold is the rising grey trendline you can watch marked in my chart where bitcoin can bounce and form a recovery up to the suggested higher levels, these two levels of support are important here, when they confirm to the downside bitcoin can increase further which can firstly invalidate the bullish continuation, this scenario is not the highest possible currently but it should not be kept by side as selling pressure will increase below the trendline.

When bitcoin shows up with the more likely bullish scenario and manages to move above the 12.000 USD level again it is important here that bitcoin forms a stabilization in the best case with consolidation above the level as it is marked in my chart, this will be a good place to enter the market when also the 40-EMA and the rising trendline coming together forming a solid support-cluster here. Such movements can be traded either aggressively with immediate entry or conservative with entry after confirmation, although the aggressive entry is also possible here the conservative will be much smarter. After that we will see how the situation will develop. Bitcoin has confirmed above the strong resistance nevertheless now it is time to show how sustainable this breakout is and how bitcoin will proceed and how the following up will play out over the course of next times.

In this manner, thank you for watching, support for more market insight, all the best!

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