Bitcoin, Since Bearish Declines, These Outcomes To Consider Now!

23 Sep 2020Hi my friends,

Welcome to this update-analysis looking at bitcoins 4-hour timeframe perspective, the recent events, the current formational structure and what we can expect the next times. As bitcoin fell below the ascending-channel-formation as expected and completed the upside wave-count it now tested the remaining support which is a crucial reference point in the still remaining structure. Now a big question, which is also confirming the view on the bigger timeframes and technical analysis, is if this structure can hold sustainably and bitcoin manages to move to the upside from here anew or bitcoin visits lower levels again, even then it is important that bitcoin shows certain mechanisms, therefore I detected the important levels and possible outcomes we should consider at the moment, for now, we should not over speculate the situation and look what the market can do and on the contrary what is a lesser likely outcome.

Looking at my chart you can watch the 700-EMA marked in blue where the price bounced since the bearish breakdowns established here, by the way, it was a great point to cover the profits of shorts which we also realized within the channel. Now as bitcoin confirmed this EMA firstly as support which is also matching with the horizontal in this level bitcoin has the potential from here to stabilize further to test the remaining resistance in the structure which it has at the 200-EMA level, when bitcoin tests this level the more likely scenario is the first pullback from there before a new test can occur, overall bitcoin needs to take out this EMA to show bullish continuation within the bull zone marked in green otherwise when bitcoin does not show up with this and mingles marginally in the structure it will increase the possibility for continued bearishness and a next leg to the downside.

Considering the bullish stabilization scenario it is highly important for bitcoin to do not fall below the orange box marked in my chart as below this level bitcoin can move on further and test remaining support on validity, overall bitcoin needs to hold the grey dashed falling trendline considering any bullishness here, below this trendline it will be a high bearish pressure when bitcoin closes in the bear zone. Currently, it is important to wait and don't overextend the market as this is happening to often these days, bitcoin made a leg to the downside, now bitcoin firstly needs to allocate itself before showing any other direction at the end of the day. Compared to other cryptocurrencies bitcoin is certainly one of the stronger coins at the moment as it is holding above the established support while others are below them, it will be interesting how further developments show up here.

In this manner, thank you for watching, support for more market insight, good day to you, and all the best!
“Patience is the road to wisdom.”

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