https://greencandlesticks.com/wp-content/uploads/2020/10/BTC-10-03-2020.pngHi, Welcome to this #analysis where we are looking at bitcoins daily timeframe perspective, as I detected #bitcoin is building a huge formation here which will play a crucial part in the ongoing outcomes and developments, this is why it is important to look at the certain levels and possible outcomes we can expect here, bitcoin, as well as other major #cryptocurrencies, are in somewhat a sideways movement since some time and such price-action will end in decisive volatile #breakouts either to the up or downside, the big question here is if these breakouts will lead into the bearish or bullish direction, in such situations we should not overspeculate things as it is happening too often these times and therefore we should better determine when a definite trend will end which can bring clarity into the situation till then smaller timeframes can be taken for trade adjustments before looking on the larger changes.
Range Building And Development:
When looking at my chart you can watch there that bitcoin has this fundamentally important neckline as the origin of the head and shoulder formation starting back in april this year with the left shoulder and the head already formed properly and now is bitcoin building the right shoulder as we can see it bounced already at the neckline, such shoulder development can often result into several smaller shoulder as we have seen it also with the left shoulder formed, besides that bitcoin currently builds the range of the right shoulder as the upper resistance is marked with the red price adjustment in my chart and the lower support marked with the blue price adjustment, these two ranges are important references points in the structure here and with a confirmation above either the upper or lower will bitcoin show the ongoing conclusions coming up.
Outlooks:
As already mentioned such formations normally breakout to the downside however there can be expectations of this when the chart has some significant supports above and is trading above important levels which is given with bitcoin in this case as it is still trading above the 10.000 USD psychological level which is, in fact, strong support and prices normally don’t just break out below such support/resistance levels, counting these factors together it is important for further measurements that bitcoin shows up with the right confirmation which will show up in the bullish perspective when bitcoin moves above the upper resistance and closes there, with the #bearish perspective this will happen when bitcoin moves below the lower support and closes there, after either confirmation has shown up it will activate the targets and further continuations with a high possibility.
Conclusion:
Bitcoin is trading in a sideways market this means for traders to better look for smaller timeframes and changes to trade or either stay out till there comes fuel into the environment and larger trends show up this is also important for money protection, as it is often in such phases as we have seen it also in the past that traders get impatient and trading often in several directions which can prove fatal in the end as it leads to overtrading, this is why it is so important to keep the patient and a cool head till the market will show up with the necessary actions otherwise smaller changes can also add up to a series of successful trades when it is done in the right professional manner, therefore, it will be highly interesting to watch how bitcoin is developing here and if the head and shoulder manages to break upsides or we see a pullback as suggested.
source:
https://greencandlesticks.com/bitcoin-is-building-a-massive-head-and-shoulder-formation/
