Bitcoin, Structural Allocation And Next Levels To Assess!

2020년 8월 9일

Hello Traders Investors And Community, welcome to this analysis where we looking at the bitcoin 12-hour chart, the current structure, the importance of several levels which bitcoin still holding but will show great volatility when broken and how do we handle such situations in the right manner. The last weeks bitcoin showed great upside volatility as it broke above its long-lasting consolidation and confirmed it bullish where it is now at a point in which the trend tends to struggle and already established some bearish signs which can gain strength when bitcoin does not hold the range appropriately. Bitcoin has shown good upside potential, yes but we should not ignore the facts that it begins to struggle and can show up with increased downside pace when certain scenarios play out which I detected determining bitcoins destiny the next times.

Support/Resistance:
- Currently, this is a crucial factor in the structure as bitcoin has still a strong and solid resistance level above which you can watch marked in red between the 11850 and 12150 levels which it is approaching now another time, the fact that bitcoin will not just take out this level and run is given therefore a bearish bounce back firstly in this range is more possible which doesn't need to end up in more bearish pressure but bitcoin will definitely have a harder time to travel above this resistance, furthermore the support bitcoin has which is the higher-low trendline in black and the 20-EMA blue are important factors in the structure, when they are broken to the downside this will cause continued downside movements within a highly likely spectrum and bitcoin will look for lower levels, therefore these supports are preliminary to hold when considering the bullish continuation.

CME-Gap:
- What we have further down in the structure is a CME-gap between the 9500 and 9600 level and the history of bitcoins past price action has shown that such gaps tend to be filled although bitcoin already confirmed in the opposite direction. Concretely in this established structure, this means when bitcoin takes out the before mentioned supports as shown in my chart the possibility for such a gap-fill increase highly. Proportionally speaking when bitcoin shows up with this it will be a big bearish move where bitcoin definitely has to show strength to come up again otherwise it is possible that the price continues in the direction as this has been seen also not few times within bitcoins gap-fills. We will see how this will play out but currently, this fill-scenario should not be kept by side because it can also cause a shift from bitcoin established bullishness over the last weeks.

Taking these factors into consideration bitcoin has basically two possible outcomes here which will be confirmed within the particular price-action, the first is that bitcoin manages in any manner to move above the huge resistance-cluster it still has in the structure and close above it to further higher possibly, the second is that bitcoin closes below the EMA and trendline support with volatile price-action which will cause more selling pressure as the important supports are gone by. Currently, each scenario can play out but the support breakdown scenario is slightly higher as bitcoin has still an overbought perspective on higher timeframes but what is important here is to wait on the proper confirmation before considering each vision granted which is highly important and failing often these days in order to adjust rightly to upcoming price-actions.

In this manner, thank you for watching the analysis, support for more market insight and all the best.
"The high destiny of the market is to differentiate rather than to speculate."

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