Bitcoin Volatility Deflates Till It Comes Fuel Into The Journey!

13 wrz 2020

Hello Traders Investors And Community, Welcome to this analysis we are looking at bitcoins 4-hour timeframe perspective, the recent events, the current structural formation, and how possible outcomes can look like the next times. Bitcoin fell heavily to the 10.000 USD mark which it held for a longer time and did not fell below, in this case, there came two factors together once the bears pushing the price heavily to the downside and secondly the bulls bought the support at the previous resistance, firstly the bulls were stronger in this case however there are still some important facts and mechanisms to look at indicating that pull-backs may not be over yet, in this purpose I detected the main levels and outcoming scenarios we should consider here for bitcoins destiny to come around with, currently the volatility has somewhat decreased nevertheless this can change when the proper outcomes show up.

Looking at my chart you can see bitcoin since it held the lower supports established this ascending-channel-formation marked in blue where it is slowly advancing with low volatility, this low volatility does not really stand for a solid and sustainable trend and can turn into the reverse direction more easily than high volatile movements. It is possible that bitcoin advances further the next times as it is seen in my chart, this advancement when it does not gain sufficiently in momentum will run directly into resistance which is crucial for bitcoin here as there is still Fibonacci and horizontal resistance lying marked in my chart with the red level, when bitcoin touches this level and turns bearishly to the downside with a swift bearish move the possibility for a break of the lower boundary and ongoing tests of lowe levels increases steeply and currently this is a more likely scenario as bitcoin did not establish serious bullishness yet.

When bitcoin confirms the layers of resistance and sets up to test lower levels the possibility of a test of the 10.000 USD S/R-level can be given when bitcoin does not hold the EMA structure here, this is really important as the 100-EMA marked in green and the 400-EMA in grey are near a crossover which can confirm bearish to the downside, however, it did not fulfill now and when the 100-EMA bounces of the 400-EMA this can invalidate the signal. Overall it is important to look with which pace bitcoin measures further when the lower boundary is broken, currently, there is not much volatility this can change and it is important to anticipate it to not get overwhelmed when the market shows up with high volatile movements coming around the corner, till then it is good to not overextend the market happening too often or just wait for the right entries to take advantage of.

In this manner, thank you for watching, support for more market insight, good day to you, and all the best!

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