Bitcoin, Since Bearish Volatility, Decisive Formation Develops!

11 sty 2021

Hi Traders,

Welcome to this analysis about Bitcoin, we are looking at the 2-hour timeframe perspective, the recent events, the current formational structure, and what we can expect the next times. Bitcoin recently has shown up with strong bearish declines after pulling back from the 41.500 USD level, this was a great opportunity for us within the channel to trade this major bearish move on the short-side giving us a great executed trade within the schedule, now as Bitcoin moved into the lower ranges and is somewhat testing the remaining support this can result in a decisive formation that will show the determinations when completed, therefore we are looking at all the important levels and likely outcomes to consider here.

As when looking at my chart we can watch there how Bitcoin now found support within this ascending-trend-line marked in blue and also within this important 200-EMA marked in light-blue, currently these supports are holding and when Bitcoin increases with bullishness from here it will move on to test the upper levels of resistances that are marked in my chart within the red level and the strong resistance lying there ase there are coming several resistances together this is a level that should not be underestimated and therefore we can expect a pullback to emerge from there firstly moving into the lower levels in the structure firstly and testing them, overall this will determine the major head-and-shoulder-formation.

Taking all these factors into consideration the formation Bitcoin is forming here will be the decisive factor in the upcoming times and it has to be noted that such a formation either completes bullishly or bearishly with a higher tendency to confirm bearishly, this is why the bearish perspective and breakout should be more expected here however it is from inevitable importance and necessary to wait on the proper confirmations before moving into the final direction of which one the bearish side has a higher possibility as already mentioned. Especially when this formation completes bearishly this will cause an increase of bearishness and point to lower levels to be reached, for now, it will be crucial how the right shoulder develops.

In this manner, thank you for watching the analysis, have a good day and of course good trading, all the best!
"Prospect is the ingredient of good fortune."

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