Bitcoin, Bounce In The Range, Decisive Formation Building!

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Hello Traders Investors And Community, welcome to this update-analysis where we are looking at the bitcoin 2-hour timeframe perspective. Since the last time bitcoin confirmed successfully the determined possible short-entry zone to the downside, which was expected as there where still layers of resistance lying. Now bitcoin bounced to the downside and into the 30-EMA where it is holding some support, the big question is now if bitcoin manages to hold this support sustainable, builds upon this to go ahead and form new highs or if bitcoin closes below the EMA and firstly visits remaining support in the range to test it as bitcoin has already done in the structure before. In this case, I detected some important signals meaningful to consider now and what bitcoin has to do for an ongoing stabilization.

Looking at my chart you can watch bitcoin now building this triangle-formation marked in red where it is consolidating above the 60-EMA and the upper resistance, such movements either they occur now on smaller timeframes or higher timeframes are known to show up with a final breakout which will be the stronger the longer the price stays in the consolidation. We saw such movements already in past price-action and although these formations are known to confirm in the direction which they came from this is not totally clear as bitcoin and also other cryptocurrencies also likely confirm these to the downside especially in an overbought or resistance condition. Looking at this fact bitcoin has a higher potential to confirm this triangle to the downside to test the remaining supports also as the correction is not yet over surely.

Basically we should keep two confirmational scenarios at hand now, this is important because sophisticated traders wait on confirmation before elevating the proper direction, the first one is a break of the upper boundary where bitcoin also needs to move above the strong 12.000 - 12.200 USD resistance mark this will bring bitcoin in a mainly bullish state where it definitely has some room to move higher, the second scenario, which is the more likely one currently is that bitcoin confirms the lower boundary downside and tests the resistance levels in the range which it has firstly at the grey trendline and secondly at the blue trendline which is important to hold, in these levels bitcoin have some solid potential to stabilize and finally move higher in the range but it is important to at least hold the blue trendline because when falling below bearish pressure will increase in the zone marked.

When bitcoin shows up with the more likely bounce back scenario on the short-term this does not mean at all that bitcoin is bearish on the middle and long-term, it has there some good supports from which it can build on but as the sideways movements is still a short time for the trend bitcoin confirmed this can go on for some longer and we should not keep this scenario by side to not get overwhelmed by circumstances when this is happening. Many people are completely bullish at the moment, yes bitcoin can directly move above resistance and form new highs but normally this is too much of a short-time where bitcoin still can go on with its correction and smart-money operators just waiting on the other side to trap the public this is why we should not underestimate the current range and overall keep the reverse perspective to look how bitcoin is reacting in the support-zones.

In this manner, thank you for watching, support for more market insight, all the best!

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

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ملاحظة

Initial Analysis: