Bitcoin, Potentials Unlocking When These Steps Show Up!

25 set 2020

Hi, welcome to this analysis, we are looking at bitcoin 2-hour timeframe perspective, since a little bounce occurred the last days which mainly was still remaining shorts covered resulting in a nice little short-squeeze bitcoin ran directly into the resistance layers above which are still existing and therefore should not be kept by side. In this structure, it is inevitable to anticipate if bitcoin has the strength to gain above the short-squeeze and develop real bullishness sufficient to take out the resistance levels or bitcoin firstly visits the lower levels in the structure, in this case, we have zones in the way where bitcoin can possibly bounce and form upside movements nevertheless we should not overextend possible rallies as pullbacks arent confirmedly over.

When looking at my chart you can see the resistance line at 10835-10845 which bitcoin recently visited and formed a swift bearish reaction to the downside, this was firstly a move to the falling grey support line and to the territory of the 60-EMA marked in grey, the next times we can expect somewhat of consolidation to the downside here as it is marked in my chart, the resistance still remaining and on the lower side it is the support which is there when this shows up as it is marked it will be a very good set up for possible further continuations and a move above the short-squeezes we have seen normally aren't strong enough to build consistent upside action when bitcoin bounces then at the Fibonacci-support it can be the origin of continued bullishness.

Bitcoin is in a situation where it has some remaining supports and possibly can also confirm them with a decent probability nevertheless it is crucial that bitcoin really does so and does not fall below the Fibonacci-support in blue again because it will increase bearish pressure and move bitcoin to test the remaining lower levels in the structure marked in orange when bitcoin shows up with this the whole formation can alter into a more bearish one that can lie the ground for a more protracted bearish move to the downside this scenario should not be kept by side and it can only be invalidated when bitcoin manages to form new highs in the structure developed when bitcoin moves above the descending-resistance-line in black it can be the first indication for it.

In this manner, thank you for watching, support for more market insight, good day to you, and all the best!
"Good luck is when opportunity meets preparation."

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