Bitcoin, Approaching Critical Range Once More, Important Level!

14 août 2020Hello Traders Investors And Community, welcome to this analysis where we are looking at bitcoin 2-hour timeframe perspective, the recent price action, the current formation building, what to expect the next times and how to handle the upcoming situations in the right and appropriate manner. The last days bitcoin confirmed its huge resistance mark at the 12.000 USD level once more to the downside, which was, by the way, a good trade on the short-side within the elite trading channel where we entered before the huge downside volatility set in, now bitcoin has stabilized but it has still strong resistance levels above which should not be ignored. In this case, I detected some important signals which will determine the further outcomes of bitcoin.

Looking at my chart you can watch there that bitcoin just moved above the 60-EMA which was an important step in this stabilization and an indication for some more upside to come. The next times we can expect bitcoin to touch this EMA again and then bounce from there as it is seen in my chart, it is important that bitcoin bounces in this level and holds it to move higher otherwise when bitcoin closes below the EMA it will lie the way for increased bearishness to the downside and further downside actions. But when everything goes well and bitcoin bounces in this level we can expect to move higher in the range at least testing the remaining resistance bitcoin has in the range at the 12.000 - 12.200 level marked in red in my chart.

When bitcoin moves as expected and approaches the resistance mark a third time it is highly possible that bitcoin bounces bearish to the downside in this level, therefore, this can be a possible short-entry looking for minimum targets at the 60-EMA, when this level does not hold and bitcoin falls below it bearish pressure will increase at least testing the grey trendline if this does not hold the higher-low trendline marked in blue within my chart will be the next one, this is the last important support to hold and when it has crossed to the downside bearishness will take over and bitcoin will fall more approaching lower downside targets, in this case, we should not ignore the importance of these levels in order to anticipate possible trend changes.

In this manner, thank you for watching the analysis, support for more market insight, all the best, and good weekend! ;)
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Information provided is only educational and should not be used to take action in the market.