Bitcoin, Touched The Trendline, These Scenarios To Consider Now!

2 sep. 2020Hello Traders Investors And Community, welcome to this update-analysis where we are looking at the bitcoin 4-hour timeframe perspective, the recent events happened, the current formational structure, the basically possible ways of outcome we can expect from bitcoin here and how to possibly handle the particular situation appropriately. The strong resistance-cluster bitcoin had higher in the structure mentioned with the huge possibility to confirm to the downside now done so and the EMAs with rising blue trendline did not hold, this gave the signs for more downside to come to the point now where bitcoin touched the second rising trendline and bounced a little from it, this trendline is crucial in the current structure and will be important for further outcomes, therefore, will show bitcoin continues bullish to the upside or breaks to the downside, in this case, I detected the important levels and further scenarios in destiny.

Looking at my chart you can watch there that bitcoin formed now some little up bounces from the blue rising trendline which can also be seen on the lower timeframes, normally after such mechanisms happening the trend will either reverse in the structure or move further to the downside as you can watch the bullish and bearish-continuation-zone marked in my chart. When bitcoin manages to hold this trendline and form the further movements as it is seen in my chart the price can move above the EMA-structure to confirm in the bullish-continuation-zone, this however is not the most likely scenario currently as the bearish breakdowns where just to strong and there are still these solid resistance levels lying consisting of the EMAs and horizontal resistance, when the resistance levels confirm properly and the trend moves on to the downside the bearish continuation is overall more possible than the bullish one.

In this situation at the moment, it is important to wait on the proper confirmation before establishing in the proper direction, as you can watch it marked in my chart the bullish confirmation will occur when the trend moves above the 40-EMA marked in orange this will confirm bitcoin in the bullish-continuation-zone, on the other side the bearish confirmation will show up when price moves decisively below the rising blue trendline and closes there as it is marked, when this happens there will come bearish pressure with a high possibility, overall we can count these possibilities to a more possible bearish scenario with 55 % and on the other side the bullish scenario with a possibility of 45 %, as many people becoming bearish at the moment this is possible, however, it needs to confirm with the proper price move before that we should not over speculate the situation.

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