Bitcoin, Forming Decisive Flag-Formation, Possible Scenarios!

٧ ديسمبر ٢٠٢٠

Hi my friends,

Welcome to this analysis about Bitcoin, we are looking at the 1-hour timeframe perspective, Bitcoin the last times since it formed the all-time-high and the initial bull-trap resulting out of it already completed the ascending-triangle-formation which moved into first downside targets, now Bitcoin somewhat recovered from these moves and is now forming an important formation here that can be the decisive source for the upcoming outcomes, therefore I detected all the important levels and likely scenarios we should consider with Bitcoins established structure and the ongoing movements.

As when looking at my chart we can watch there Bitcoin now has formed this ascending-channel-formation marked in my chart in blue with the coherent wave-count established within the formation already completing waves A to D and as Bitcoin now approaches the lower-boundary anew which already confirmed severely as support this can be the major origin for the wave E of the wave-count which will finalize the whole wave-count and therefore also the whole formation, this final wave E will directly run into the strong resistance-cluster marked in my chart in red within the upper boundary of the formation where several resistances lying and especially the bull-trap zone where Bitcoin formed the bull-trap after the all-time-highs made, in this case, it is a zone which will highly likely confirm as strong resistance when Bitcoins visits it and result into a pullback, when this pullback moves below the lower-boundary of the formation this will complete the whole formation as a bear-flag and will point to lower levels firstly into the ascending-trend-line, when this ascending-trend-line marked in dashed grey within my chart can not hold Bitcoin will increase bearish pressure below it.

The bearish pullback especially in the middle and long-term definitely did not yet end and as there are the strong bearish signs established within the structure Bitcoin is likely to show up with the protracted bearish movements under the given circumstances not to mention here the heavily overbought conditions on the higher timeframes as well as on the shorter timeframes, this second bearish formation besides of the ascending-triangle which already completed is the next indication for a new bearish pullback that should definitely not be underestimated here.

In this manner, thank you for watching the analysis, have a great day and weekend, 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.