Bitcoin, Facing Two Upcoming Scenarios, One More Likely One!

2020년 11월 27일

Hi my friends,

Welcome to this analysis about Bitcoin, we are looking at the 12-hour timeframe perspective, the recent events, the comparison to the analysis on the nearer timeframe, the currently established structure, and where the journey can move the upcoming times. As already mentioned in the previous analysis since Bitcoin completed the major broadening-wedge-formation and shown up with the heavy bearish decline it is still in a precarious situation with strong resistance layers lying in the structure which are likely to firstly confirm and show up with a pullback, the big question then will be if this pullback can manage to stabilize above the trendline or Bitcoin moves on with the bearishness and visits even lower levels ahead, therefore I detected the two upcoming scenarios we should consider here and with one more possible scenario that we should not keep by side in this structure and upcoming movements.

As when looking at my chart we can watch there Bitcoin currently still trades above this important trendline and bounced within the 50-EMA marginally however even that strong that it can test the upper-resistance layers from here that you can watch marked in my chart with the red level, when Bitcoin approaches this level it will firstly initiate a pullback from there that will then move on to test the ascending-trend-line marked in my chart with the grey lines where also the 50-EMA is coming into place and holding it to the upside when Bitcoin manages to bounce within this cluster which is not the more likely scenario with 35% there can be a new crucial test of the resistance-layers expected and possible continuation from there nevertheless that is not the most possible scenario at the moment, the more possible one with a possibility of 65% is the protracted bearish move which is not seldom seen after such a formation and bearish downside volatility developed, this scenario with the bigger likelihood will play out when Bitcoin moves below the ascending-trend-line and closes there, such price-action will validate further bearish pressure where Bitcoin will move on till the second ascending-trend-line is reached.

What is from high importance at the moment is to bear in mind that Bitcoin developed this strong bearish pullback to the downside and that they are not necessarily over yet as the market often shows up with a next bearish move to the downside after such initiation as the past has already noted often. For traders this now means to keep patient and look how Bitcoin reacts within the established structure to possibly enter the market when the time is ripe better than to rush into trades that do not provide the proper satisfaction, in any case, we should not keep the bearish continuation out of sight here as they can show up under the prospected circumstances which does not mean Bitcoin is completely bearish on the more middle-to-long-term however as things change the overall picture can form into a more bearish one where we as sophisticated traders should prepare on to take appropriate action when it is auspicious.

In this manner, thank you for watching the analysis, have a good day and also good trading, all the best!
"Prospect is the ingredient of good fortune."

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