Bitcoin, Building Decisive H-S-Formation, Possible Outcomes!

7 lis 2020

Hello Traders Investors And Community,

Welcome to this analysis where we are looking at Bitcoins 1-hour timeframe perspective, the recent events, the current formational structure, what destinations we can expect the upcoming times and how to possibly handle these outcomes in an appropriate manner. Since Bitcoin has shown up with greatly exponential bullish volatility to the upside it is now somewhat consolidating in the range between 15240-15960 where it already formed a descending-channel-formation and the coherent wave-count within this channel, besides that Bitcoin is now forming another major formation which will be the decisive telling part for the further outcomes and destinies in Bitcoins journey, therefore I detected the important levels and considerable scenarios we should elevate in the current situation and structure Bitcoin is forming.

Looking at my chart you can watch there Bitcoin now testing the 20-EMA in green which is matching with the upper-boundary of the previously established descending-channel-formation and also with the neckline of the major head-and-shoulder-formation marked in my chart in blue. Currently, there are two possible scenarios of how the whole formation can confirm the further pace, the first one is the bullish case which will confirm when Bitcoin moves above the upper head-shoulder-resistance and closes there to set up on the line before a continuation to the upside can follow, the second one is the bearish scenario where Bitcoin closes below the neckline and increases with bearishness till the bearish pressure continuation to the downside will follow up.

Taking all these important factors into consideration and the facts lying ground a bullish breakout has a greater possibility by 65% to show up compared to the bearish side with the lesser possibility of 35%, for now it is highly important to wait on the proper confirmation before moving into the final direction, when this case happens a trade can be entered, although it is also possible to enter the market directly on the immediate basis the smartest is to wait on the confirmation as it will point to the best setup, when Bitcoin has shown up with the more likely bullish breakout the targets will be around 16300 from there on it has to be elevated if Bitcoin forms a reversal or manages further up moves nevertheless that Bitcoin has formed a head-and-shoulder-formation here it is still overbought and there are strong resistance layers above this is why a bearish reversal also after the head-and-shoulder targets reached should not be underestimated.

In this manner, thank you, everybody, for watching, have a good day as well as good trading, all the best!
“Trading effectively is about assessing possibilities, not certainties.”

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