These Are The Obstacles BTCUSD Is Currently Facing.
Updated
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Hello, Traders Investors And Community, Today I discuss some important observations I made the last time looking at the BTCUSD-chart, what I already mentioned in recent middle-to-long term analysis of BTCUSD watching the Daily-to-Weekly price-chart of BTC is that we are still in an overall consolidation period as I already pointed out the importance of the three-major trend-lines we have in this picture now, once it is the huge resistance above our heads which you see in the chart marked with the red straight trend-line and the red dotted trend-line, there is also the black rising trend-line which holds the structure and the blue falling trend-line which formed from the lower-lows in the past months, as I already said this overall formation is still neutral so, I highly recommend to you that you watch my analysis where I determined the shape of our situation to have an overall picture of what is going on now:
Now, what you can see in my chart, is, that we got rejected two times in a major confluence zone which plays an important role in determining bitcoins further movement. The first time we got rejected in this confluence-zone BTCUSD provided a 57 % drop-down to the low at 3850 from which we saw this slowly establishing up-trend to the recent point and the recent second rejection at this confluence-zone. What does the second rejection mean? It is possible that BTCUSD falls more because this is such a strong important level, the good news is that we have support below us which BTCUSD will first recognize at the 5800 - 6000 range. When this level cant be held and bitcoins drop more down the next support-range is between 5800 and 5000. These levels building a logical triangle with the falling and dotted red resistance line and the falling blue trend-line as you can see in this chart, if we approach these levels before moving up I am expecting a healthy development of support in this range.
Furthermore, if we establish the support in this arena we can expect some up-moves there, but, to have a decent bull-continuation we first have to break the falling red-line to the upside, which isn't impossible for sure but it is still a strong resistance level. On the other side, we have the 45-EMA which plays into the confluence-zone, it will also be a highly respected resistance level which first has to be taken out to initiate a further up-trend! So what we do have now at hand? On the one side, it is a -bullish scenario showing decent moves after the confirmation of support, but with more than one obstacle in the way and still resistance above us, to provide a confirmed up-trend BCTUSD has first the task to take the major strong falling red trendline out. On the other side it is the -bearish scenario which kicks in when we cross the rising black trend-line down, this scenario is possible but when it forms it will take some time and it will be recognized as the scenario because BTCUSD won't be to hold the support between 5000 and 5800. The bullish scenario is definitely possible and I know many of you want the bullish scenario to be confirmed as it is also the healthiest way in the markets and everybody is happy but we have to see the confirmation first as I explained, we are still in a financial crisis, and as the coronafears and the economy all over is recovering a little bit, step by step, that does not mean we are in a solid confirmed bullish environment, this includes bitcoin as well as the major indices, stocks, and gold.
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In this manner: The Pessimist Sees Difficulty In Every Opportunity. The Optimist Sees Opportunity In Every Difficulty.
Thanks, For Watching! Have a good day!
Information provided is only educational and should not used to be for market purposes.
_______________________________________________________________________________________________________________________________________________________________________
Hello, Traders Investors And Community, Today I discuss some important observations I made the last time looking at the BTCUSD-chart, what I already mentioned in recent middle-to-long term analysis of BTCUSD watching the Daily-to-Weekly price-chart of BTC is that we are still in an overall consolidation period as I already pointed out the importance of the three-major trend-lines we have in this picture now, once it is the huge resistance above our heads which you see in the chart marked with the red straight trend-line and the red dotted trend-line, there is also the black rising trend-line which holds the structure and the blue falling trend-line which formed from the lower-lows in the past months, as I already said this overall formation is still neutral so, I highly recommend to you that you watch my analysis where I determined the shape of our situation to have an overall picture of what is going on now:
Now, what you can see in my chart, is, that we got rejected two times in a major confluence zone which plays an important role in determining bitcoins further movement. The first time we got rejected in this confluence-zone BTCUSD provided a 57 % drop-down to the low at 3850 from which we saw this slowly establishing up-trend to the recent point and the recent second rejection at this confluence-zone. What does the second rejection mean? It is possible that BTCUSD falls more because this is such a strong important level, the good news is that we have support below us which BTCUSD will first recognize at the 5800 - 6000 range. When this level cant be held and bitcoins drop more down the next support-range is between 5800 and 5000. These levels building a logical triangle with the falling and dotted red resistance line and the falling blue trend-line as you can see in this chart, if we approach these levels before moving up I am expecting a healthy development of support in this range.
Furthermore, if we establish the support in this arena we can expect some up-moves there, but, to have a decent bull-continuation we first have to break the falling red-line to the upside, which isn't impossible for sure but it is still a strong resistance level. On the other side, we have the 45-EMA which plays into the confluence-zone, it will also be a highly respected resistance level which first has to be taken out to initiate a further up-trend! So what we do have now at hand? On the one side, it is a -bullish scenario showing decent moves after the confirmation of support, but with more than one obstacle in the way and still resistance above us, to provide a confirmed up-trend BCTUSD has first the task to take the major strong falling red trendline out. On the other side it is the -bearish scenario which kicks in when we cross the rising black trend-line down, this scenario is possible but when it forms it will take some time and it will be recognized as the scenario because BTCUSD won't be to hold the support between 5000 and 5800. The bullish scenario is definitely possible and I know many of you want the bullish scenario to be confirmed as it is also the healthiest way in the markets and everybody is happy but we have to see the confirmation first as I explained, we are still in a financial crisis, and as the coronafears and the economy all over is recovering a little bit, step by step, that does not mean we are in a solid confirmed bullish environment, this includes bitcoin as well as the major indices, stocks, and gold.
_______________________________________________________________________________________________________________________________________________________________________
In this manner: The Pessimist Sees Difficulty In Every Opportunity. The Optimist Sees Opportunity In Every Difficulty.
Thanks, For Watching! Have a good day!
Information provided is only educational and should not used to be for market purposes.
_______________________________________________________________________________________________________________________________________________________________________
Note
UPDATE ANALYSIS: The most significant part in this whole price action development has been the bounce of the BITCOIN price action above local levels.Since BITCOIN continued with the final breakout this has been the fundament of a great continuation of the price action into the further objectives.
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