Bitcoin, Next Bull-Trap Possible When This Zone Approached Anew!

16 gru 2020

Hello Traders Investors And Community,

Welcome to this fundamentally important 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. As seen in the past after Bitcoin moved into the new all-time-high zone it has shown up with heavy bearish declines to the downside which was expected when the swift pullback set in as Bitcoin has shown up with it, Bitcoin had to stay above the all-time-high and close there and as this does not happen the bearish pressure came in and increased to visit the lower levels, at the moment Bitcoin is in a very similar situation where it is forming price-action that can indicate a similar swift reversal and pullback to the downside minimum to test lower supports, this is why we should not underestimate a next bull-trap moving in here and also be prepared for this case, therefore I detected all the important levels and likely perspective we should exemplify with Bitcoin in its developed structure and the upcoming outcomes ahead.

As when looking at my chart we can watch there how Bitcoin is about to build this ascending-wedge-formation which is normally known as a bearish reversal formation indicating the reversal when the formation completes, at the moment this formation is held to the upside by the 20-EMA marked in my chart in grey and Bitcoin also developed this coherent wave-count within the formation already completing waves A and B after which Bitcoin is now about to form the next wave C which will lead into the remaining upper-resistances and when these are visited Bitcoin is likely to follow up with the next waves within the wave-count, the crucial point will come when Bitcoin finishes with this wave-count and the last wave E which will run directly into the bull-trap-zone marked in my chart in red where Bitcoin has this strong resistance-cluster leading into several major resistances and therefore is likely to form a new bull-trap when visiting this zone similar to the past ones. When Bitcoin then finally moves below the lower-boundary as it is marked in my chart the bearish pressure will increase and Bitcoin will point to the lower-levels determined minimum at the 18700 level. For now, we should keep patient and register this possible swift bull-trap coming up in the near future to do not get overwhelmed when it finally sets in.

In this manner, thank you for watching the analysis, have a great day and weekend, 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.