This Scenario Can Lead Bitcoin Above Resistance And Even Higher
Updated
Hello Traders Investors and Community, today I talk about a significant issue according to bitcoins price movement on the middle-to-long perspective, there are some important signs which can indicate a break of the strong resistance levels we have above our heads. As I pointed out in recent analysis about the bitcoin price action we are still in an overall consolidation, this consolidation will end when we confirmed in the proper direction, I highly recommend that you go on my account and see the past bitcoin-charts to have a full-perspective about the current price action and where it is going.
Alright, the important issue we currently face when looking at the chart is that bitcoin approaches higher little by little with small steps as we have still plenty of resistance-level above. We can see some good bullish confirmations on the locally time-frame but that does not mean at all that we are bullish in the long-run, to get bullish in the long-run there has to come to the right confirmations on the way otherwise bitcoin is still in consolidation. Now, what does bitcoin have to do to get bullish firstly in the middle-term? As you can see in my chart bitcoin is trading in a possible descending broadening wedge formation, this is a formation which is seen on many time-frames from the one hour chart to the weekly chart and it has to be confirmed properly to indicate a continuation and to validate the target of the wedge. This validation will be in this current case firstly the break of the strong resistance-zone you see in my chart, which is a resistance-trendline drawn from bitcoins all-time-high to the down-swings and lower highs of past weeks and months, this trend-line matches also with the upper-trend-line of the broadening wedge thus building a coherent structure which has to be taken out to confirm the broadening wedge. Please remember that a broadening wedge can also fail the confirmation is, in this case, the important part similar to a triangle.
Now, what can we expect when the broadening wedge formation confirms accordingly right to the structure? When this scenario sets in we can expect the target to be measured in the range between 12300 and 13800, which depends on the time and level on which the broadening wedge confirmed. When we reach this level after the successful confirmation we can expect high supply in this zone, therefore, I expect a stronger move to the downside in this case we have the first support at the now support line which was the resistance line before. When looking at this fact we see a nearly three years old resistance level taken out now this gives bitcoin possible space for further continuation. After that level confirmed as support, there is a possibility to take out the higher high 2019 and therefore giving bitcoin room to advance higher, please remember that we have to confirm these scenarios and that the direction can only be measured when bitcoin confirms the scenario right to indicate the next steps, this is how technical analysis should work and it is the difference to mere speculation. It is also the critical thinking of which every trader should handle the market, to activate the brain properly and trade what to see and not what to think or hear from people which call bitcoin to reach 1.000.000 in two weeks.
Okay, my friends, this should give you a picture of the current situation facing bitcoin, remember that we first have to take out the strong resistance above our heads to confirm the broadening wedge as validating otherwise it can still fail and turn into bearish as the consolidation in which we currently trading is still neutral in trading terms, firstly when we close above the resistance we can see bitcoin closing in the bull-zone.
Thanks for watching my analysis, feel free to support my friends and don't forget as I always say:
The ambition to transform opportunities into gold remains the most significant tool for a trader.
In this manner FAREWELL
Information provided is for educational purposes only and should not be used to take action in the markets.
Alright, the important issue we currently face when looking at the chart is that bitcoin approaches higher little by little with small steps as we have still plenty of resistance-level above. We can see some good bullish confirmations on the locally time-frame but that does not mean at all that we are bullish in the long-run, to get bullish in the long-run there has to come to the right confirmations on the way otherwise bitcoin is still in consolidation. Now, what does bitcoin have to do to get bullish firstly in the middle-term? As you can see in my chart bitcoin is trading in a possible descending broadening wedge formation, this is a formation which is seen on many time-frames from the one hour chart to the weekly chart and it has to be confirmed properly to indicate a continuation and to validate the target of the wedge. This validation will be in this current case firstly the break of the strong resistance-zone you see in my chart, which is a resistance-trendline drawn from bitcoins all-time-high to the down-swings and lower highs of past weeks and months, this trend-line matches also with the upper-trend-line of the broadening wedge thus building a coherent structure which has to be taken out to confirm the broadening wedge. Please remember that a broadening wedge can also fail the confirmation is, in this case, the important part similar to a triangle.
Now, what can we expect when the broadening wedge formation confirms accordingly right to the structure? When this scenario sets in we can expect the target to be measured in the range between 12300 and 13800, which depends on the time and level on which the broadening wedge confirmed. When we reach this level after the successful confirmation we can expect high supply in this zone, therefore, I expect a stronger move to the downside in this case we have the first support at the now support line which was the resistance line before. When looking at this fact we see a nearly three years old resistance level taken out now this gives bitcoin possible space for further continuation. After that level confirmed as support, there is a possibility to take out the higher high 2019 and therefore giving bitcoin room to advance higher, please remember that we have to confirm these scenarios and that the direction can only be measured when bitcoin confirms the scenario right to indicate the next steps, this is how technical analysis should work and it is the difference to mere speculation. It is also the critical thinking of which every trader should handle the market, to activate the brain properly and trade what to see and not what to think or hear from people which call bitcoin to reach 1.000.000 in two weeks.
Okay, my friends, this should give you a picture of the current situation facing bitcoin, remember that we first have to take out the strong resistance above our heads to confirm the broadening wedge as validating otherwise it can still fail and turn into bearish as the consolidation in which we currently trading is still neutral in trading terms, firstly when we close above the resistance we can see bitcoin closing in the bull-zone.
Thanks for watching my analysis, feel free to support my friends and don't forget as I always say:
The ambition to transform opportunities into gold remains the most significant tool for a trader.
In this manner FAREWELL
Information provided is for educational purposes only and should not be used to take action in the markets.
Note
ANALYSIS UPDATE: This has been a significant pattern for BITCOIN as the whole formation turned out in the bullish direction with the huge breakout above the boundaries. The completion of the formation has been a meaningful origin of the huge bullish bull market expansion with a great chunk of volatility + volume increase and the fundamental economic action that followed through.
►✅JOIN THE BEST+ TOP TELEGRAM TRADING CHANNEL: t.me/VincePrinceForexGoldStocks
►🚀Write To Join the Elite VIP Signal Channels: @Vince_Prince
►🔥JOIN BYBIT TOP EXCHANGE►🎁 UP TO $30,000 BONUS NOW: partner.bybit.com/b/VinceByBit
►🚀Write To Join the Elite VIP Signal Channels: @Vince_Prince
►🔥JOIN BYBIT TOP EXCHANGE►🎁 UP TO $30,000 BONUS NOW: partner.bybit.com/b/VinceByBit
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.