Welcome to this analysis about BITCOIN , we are looking at the 2-day timeframe perspectives. Bitcoin in recent times moved on to initial breakout and form a new high in the structure however there is still a massive resistance holding on and the possibility for a pullback is not yet from the desk here however as I discovered now Bitcoin is about to form a very interesting formation that when it completes has the ability to boost Bitcoin to new highs, therefore it is of pivotal necessity that Bitcoin does not develop price-action that can invalidate this whole formation again however when it does not happen and Bitcoin finalizes the formation properly it will be the origin of great volatilities to be expected.
In the last weeks, we saw Bitcoin constantly forming higher highs in the structure while simultaneously developing a divergence on the oscillator side which I already explicated in the former analysis. Although China is moving on with the restriction of Bitcoin trading and mining the Bitcoin price managed to advance, this shows in the structure and as El Salvador’s final adoption of Bitcoin as legal tender is emerging tomorrow this can be an additional indication for increased demand moving into the market. Therefore when considering a pullback in the near future there is a solid support and demand given that provides the fundament for stabilizations and corresponds with the cup-handle-formation I detected.
Taking the look on my chart we can watch there how Bitcoin already completed the main cup of the cup-and-handle-formation and now moved on to test the neckline marked in black in my chart, this neckline is also resistance, besides this Bitcoin has also horizontal resistance within this area formed by past price-action and also completed a wave-count recently. These events pointing to a pullback likely to develop in the near , it is possible that Bitcoin moves a little higher to form the next bull-trap however the pullback-development should be expected as momentum is also slowing down. Once this has emerged it will be a crucial development to complete the whole formation with the handle.
Once the pullback established Bitcoin will approach the lower levels of support marked in my chart in the green area where Bitcoin has paramount support between the 41325 and 43450 USD level, when Bitcoin approaches these zones it is likely that a bounce in this structure occurs that pushes Bitcoin to finally complete the whole formation with a breakout above the neckline, for now it is also possible that the handle completes before this support when the demand in the structure is that much increased that Bitcoin easily bounces therefore it will be central to see how Bitcoin approaches these levels. The whole formation will be completed when Bitcoin finally bounced and stays above the neckline, this will activate all-time-high upside-targets, it will be a interesting journey ahead.
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Information provided is only educational and should not be used to take action in the markets.
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