BTCUSD, Building The Triangular Formation, Likely Outcomes!

1 oct. 2020

Hi Traders Investors And Community,

Welcome to this analysis about bitcoin and its 4-hour timeframe perspective, we are looking at the recent events, the current formational structure, what we can expect next times, and which outcomes are more likely than others. Bitcoin showed up some downside volatility the last times where we need to ask the question if this will continue further or bitcoin manages to form a reversal here, on the higher timeframe bitcoin diminishes in volatility and is still in a bigger consolidation phase, what will be seen after such phases is an extensive breakout and increase of volatility either to the up or downside, what I have spotted besides that are some other important levels and outcomes we need to consider at the moment.

Triangle Formation And Structure:

Bitcoin is building up this massive triangle-formation here marked in blue in my chart where it already touched severely the upper and lower boundary, what is seen after such formations is an extensive breakout, the longer bitcoin stays in the triangle the heavier and stronger the breakout will be, what is also highly important besides this triangle is the fact that bitcoin is forming it above the psychological support level and also above important EMAs as well as horizontal support, this fact makes the triangle certainly more bullish than bearish at the moment, furthermore, you can watch the bullish and bearish breakout zone with the possibilities marked in my chart.

Likely Outcomes:

As bitcoin is forming this strong triangle above solid support the bullish breakout is more likely, this will show up when bitcoin moves firstly above the upper boundary and confirms it with a pullback after this bitcoin can manage to move into the bullish zone with a strong breakout, this scenario is likely to happen with 65 % possibility, on the reverse side the bearish scenario will show up when bitcoin closes below the lower boundary and continues within the bearish zone as there is still support lying above this is not the more possible scenario at the moment. What is the best for sophisticated traders is to wait on the proper confirmation before moving into the direction.

In this manner, thank you for watching, good day my friends, and support for more market insight.
"Good luck is when opportunity meets preparation."

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