Bitcoin, Still In Channel, Paramount Support To Be Stabilized!

24 maj 2020

Hello Traders Investors And Community, welcome to this analysis about the current situation facing bitcoin, at the moment we are still trading in the overall big rising upward channel but this can change the next time, currently we are in the consolidation but this can change when bearish pressure increases. As I already described in the locally time-frame we can get a triangle there which will confirm either to the up or downside, if you did not see this analysis already I recommend that you go to my account and check it out. As I discovered in the bitcoin chart there added some signals together which making the overall shape clearer in which direction we are going further therefore we are looking at the daily bitcoin chart.

As you can see looking at the chart bitcoin found support at the 30-EMA which is marked in blue in my chart this is an important level for bitcoin because we bounced there already several times in the previous trend. At the moment it means the trend is still bullish, what is adding to this bullishness is the blue rising channel in which we are trading but this bullish outlook can change when we fall out of the rising channel and below the 30-EMA which will serious and important indications for a possible bearish continuation as these levels holding the overall price still stable. When this happens it will give bitcoin an initial push to visit lower levels of support in the structure as you can see it marked in my chart.

For now, it is possible that we confirm the lower trendline of the rising blue channel to set up for a breakout of the higher resistance at the 10000 but this possibility is very marginal and not within the likelihood spectrum because the 10000 level is still heavy psychological resistance level which was the origin of the heavy breakdowns seen last months. In this case the longer correctional consolidation will come when we break the blue rising channel to the downside and confirm below the 30-EMA. This will be a major step in bitcoin because it will take out the overall uptrend rising channel which holds the important uptrend we had for over two months now therefore this is a meaningful scenario that shouldn't be ignored.



The overall structure looks like a hug bull-flag developing at the moment which needs to confirm properly for further continuation, remember that we need to confirm the important support in the range at 8100 to have a chance that the bull-flag will be realized as a real bull-flag and not a fake one, for this scenario the support at 8100 is extremely important to hold otherwise when we break this support to the downside there will come high bearish pressure and bitcoin will look for more downside to come in the bearish ground range which you can see marked in red in my chart. Therefore it is important to hold the support but when it does and bounces with good volatility we have a good possibility within the schedule that the bull-flag confirms to the upside.

So, friends, this should give you a good overview about the current situation with bitcoin and what we can expect in the next days and weeks. There are many people calling for the complete bull-market catapulting bitcoin to one trillion in market cap but this is an unrealistic approach in the markets and of high speculative value, to succeed we need to see the market in the clearest light as possible therefore we need to attain a cool head and be prepared when changes occur in the market to take opportunities with the best arrangements as possible this means to not be overly optimistic in one direction which happens too often and to keep in mind that the market especially fast-moving volatile markets in today's economy can change dramatically.

In this manner, thank you, everybody, for watching, support for more market insight, and a good day to everybody.

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