How Bitcoin Can Potentially Approve A Main Channel-Breakout!

1 Mar 2021Hello Traders Investors And Community,

Welcome to this analysis about Bitcoin, we are looking at the 4-hour timeframe perspective, the recent events, the established formational structure, and what we can expect in the upcoming times. Since Bitcoin has shown up with the strong bearish declines to the downside after marking its top at the 85.400 USD level it has now formed several lower-lows within the schedule where it is mingling in the structure, it is not seldom seen that after such movements the main reversal with high volatility establishes or the market sets up for a continuation, these two possibilities need to be waged correctly here and therefore I detected an important formation Bitcoin is forming that can be worthwhile for the upcoming determinations.

Structural Developments:
As when looking at my chart we can watch there how Bitcoin has now developed these several lower-lows within the structure which several times tested the point-of-control of the volume profile which is still an important resistance in this case. Furthermore, Bitcoin is forming this important descending-channel-formation marked in my chart with the blue boundaries and also with the coherent wave-count within in which Bitcoin already completed waves A to C fully and is now setting up with the wave D that will run directly into this strong resistance-cluster which is likely to be the origin of wave E protracting further and possibly completing the whole wave-count within the back-up-cluster marked in blue from where a bounce needs to emerge.

Upcoming Determinations:
Taking all these factors into the consideration now Bitcoin is trading in a situation where it has formed this descending-channel structure that can firstly lead to a sufficient breakout, when this breakout happens as marked in my chart Bitcoin will move on to test upper levels of resistance, the crucial thing then will be that there is the possibility given of Bitcoin pulling back at the resistance again visiting lower levels anew there for a final bullish continuation-development Bitcoin needs to inevitably close above the upper-resistance marked in red in my chart before that the bearish possibility is still given and should also not be underestimated in the upcoming times, it will be an important and interesting development ahead.

Thank you everybody for watching the analysis, great contentment for everybody supporting, have a good day and good trading, all the best!
"The high destiny of the market is to explicate, rather than to speculate."

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