The Massive Cup-Handle-Formation Bitcoin Is Building!

21 oct. 2020Hi my friends, Welcome to this analysis where we are looking at Bitcoins 12-Hour timeframe perspective, as Bitcoin is approaching the previously established resistance within the 12445 levels I made some worthwhile detections important for the upcoming determinations and destinies of bitcoins developments, as already mentioned the huge head and shoulder formation bitcoin not only formed on the daily chart but also on the weekly chart has already shown a positive bullish outcome which is pointing to higher targets in the structure, besides that Bitcoin is now forming this possible Cup-Handle-Formation which has good potential to form properly within the structure when the next steps show up, therefore, I detected the important steps ahead which leading to a final breakout as well as confirmation of the formation and activating upcoming targets.

Looking at my chart you can watch there that Bitcoin is now approaching this strong resistance level at the 12345-12445 level where a pullback is likely as it has already shown in the past with bitcoin approaching this level, beside the resistance lying there it is still supplied which has accumulated from past price actions and investors as well as traders wanting to exit the market considering the dumping which has shown up. When the likely bearish pullback shows up which is marked with the letter A as expected and bitcoin moves below this rising-trend-line marked in my chart in dashed grey it will move on to the next appropriate support to consider for stabilization and back-up which will be in this case the level marked with the letter B in my chart where several supports coming together forming this coherent support cluster where the 100-EMA marked in blue, the 38.2 % Fibonacci-level and the horizontal lying there all coming together and producing this area with a high likelihood for a bounce and final confirmation of the handle of the bigger cup-handle-formation, this will lead then to the final step in the structure marked with the letter B in my chart where Bitcoin shows up with the decisive breakout above the neckline finally confirming the formation and activating upper targets further in the structure.

When the formation shows up with certain individual steps A-C as suggested it will show very good potential for bitcoin to continue with the established bullish pace. When looking on the reverse it is highly important that bitcoin really holds this level and does not invalidate it by a close below the trendline and support-cluster, this however is at the moment, not the most expected scenario to consider. Also what is important here is that bitcoin is a front runner in the current cryptocurrency market environment as many altcoins as well as the major Ethereum still mingling in the range this can indicate an increased dominance of bitcoin, in this case, it needs to be elevated if the altcoins have the strength to move on with this pace or it will show up in a bitcoin-season, these approaches will be definitely interesting to watch.

In this manner, thank you, everybody, for watching, support is very good, have a good day and trading, all the best!
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Information provided is only educational and should not be used to take action in the markets.