Bitcoin, This Structure Will Be The Crucial Factor!

Hello Traders Investors And Community, good day and welcome to this analysis about bitcoins recent decisive events, the current price-formation and what we can expect from it the next hours, minutes and days. There are some significant structural elements which I discovered and which are important to remember when considering the further outcome of bitcoin and the resulting trade-opportunities after this outcome. I made already an analysis about the more middle-to-long-term-perspective reflecting the higher daily and weekly timeframe, this analysis is building a coherent and logical follow up so I recommend you to watch also these to have a solid overall perspective.

Alright, when looking at the 4-hour locally timeframe we can see that bitcoin had this massive unnatural bearish move to the downside, where smart-money pushed the prices to liquidate and stop-out the retailers for covering positions, this structural market movement was developed already several times from bitcoin in its past. Right at the moment bitcoin found support at the 9500 level which you can see in my chart, not only because we have some healthy support in this level but also because there is this major important POINT OF CONTROL level which you can see in my chart marked with the black lines, this level serves as the highest supply/demand level where the market provided exceptional high levels of supply and demand, therefore, this level serves as meaningful support and resistance level.

The next times will be important for bitcoin because it will show if the POINT OF CONTROL will serve as resistance or support because when the price hits such a level there will be almost in the most occasions a consolidation similar to what we see now, after such a consolidation movement it will confirm either to the down or upside. In the current situation with bitcoin this means when we break the 9880 level which you can see marked in red in my chart to the upside this will cause massive volatility to the upside because there is no supply above this area and when we cross the 9490 area to the downside this will be the origin of heavy bearish pressure down because there is not demand below this area, you can see both levels marked in my chart.

Let's see the situation as it is and don't fall for the illogical speculative trap that the bitcoin price will just fall or rise soon and then everything is fine, as we can examine now there are technical factors which need to be fulfilled to have a concrete point of direction everything else is a mere speculative approach. When we have clear confirmation of the scenarios mentioned above we can take advantage of the situation and trade it properly before that it is possible to open a position yes but this will bring an increased risk to the trade because there isn't a significant confirmation in the structure right now, when this happens we can examine the situation again and then take advantage of it.

In this manner, thanks for watching, support for more market insight and a good weekend!
Science Is Organized Knowledge. Wisdom Is Organized Life

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

Comment:

Bitcoins is showing some bullish volatility currently this can indicate a test of the remaining resistance above.

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The resistance which bitcoin has and you can see in my chart marked in red will serve as an important factor in the next market movements.

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Bitcoin shows diminishing volatility at the moment this means a high volatile move is insight

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ANALYSIS UPDATE: BITCOIN formed bullish strength above the point of control which is the origin of the main bullishness that could be the trigger to bounce BITCOIN into the bullish volatility zone.