Bitcoin, Pullback Possible Before A Solid Breakout Takes Place!

9 Okt 2020Hello Traders Investors And Community, Welcome to this analysis, We are looking at bitcoin, The 1-hour timeframe perspective, The recent events, The current formational structure, What we can expect the next times and how to handle the upcoming situations appropriately. As bitcoin recently shown up with this strong volatility move to the upside it broke above several resistance layers and confirmed its triangular formation to the upside, now as this sharp event has taken place bitcoin currently tests resistance and it is often seen that after such event a correction or pull-back takes places in the structure, this is what a possible scenario can at the moment look like, therefore I detected all the important levels and outcomes we should consider with bitcoins structure and next developments.

When looking at my chart you can watch there that bitcoin now beginning to show some supply signs and is building a triangle there, this triangle when broken with bearishness to the downside can lead to the testing of the lower levels where bitcoin can possibly stabilize, this bearishness will continue till there is substantial support found which has the potential to reverse the situation and in this case it is the back-up-cluster you can watch marked in my chart in blue where bitcoin can possibly handle to back-up as there are several supports lying consisting of the Fibonacci-supports and also the trendline from the previously formed triangle, besides that the 400-EMA marked in red is coming into the layers there, overall building a strong level where bitcoin can bounce.

Bitcoin is in a situation where it has to show if the supports lying lower in the structure can hold sustainably, when this happens and the bullishness can stabilize bitcoin can manage to move up again and prove the breakout above the descending-resistance-line marked in my chart in red, in this case it is from high importance that bitcoin really manages to bounce in this structure and does not show up with bearishness increasing while bullishness decreasing which can alter the dynamic again, for now, we should not keep the initial pullback completely by side and underestimate it, when this has completed further alignments and be measured and it will be interesting to watch how bitcoin manages to handle this range.

n this manner, thank you for watching, good day my friends, and support for more market insight.
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Information provided is only educational and should not be used to take action in the markets.