Bitcoin May Form The Third Major Flag Formation Now!

2020年7月17日

Hello Traders Investors And Community, welcome to this fundamentally important update-analysis where we are looking at the 4-hour timeframe perspective, what bitcoin is forming the last time, what we can deduce from it and how possible outcomes may occur in order to be prepared and take possible appropriate action, the first major bear-flag formation you can watch in my chart bitcoin formed and I mentioned before it confirmed properly to the downside lied ground for the next bearish formation, this preliminary bear-flag formation was the origin of subtle bearish moves to the downside which can be the foundation to a groundstone for a much bigger move and should not be ignored as such movements already occurred several times not only in bitcoin but also in other assets, therefore, I detected some meaningful signals which can determine bitcoins further outcome.

As you can watch now in my chart bitcoin has severely penetrated the 8950 where it found support and keeps testing it, the more bitcoin will penetrate this level the weaker it gets and the more increases the possibility to the downside, besides that you can watch that bitcoin already formed these two major bear-flags which already confirmed to the downside, in this case, bitcoin is developing momentarily the third possible key bear-flag which can play a crucial part in the next price determination, what stands out in this structure is the size of the bear-flags, which gets wider and bigger since the first one, such an expanded movement normally confirms a heavy and decisive move as the volatility contracts and the price will break through such a period when it is ready and enough pressure and jam is accumulated to confirm the decisive outside breakout.

Besides the fact that bitcoin is trading in the third possible major bear-flag now, it confirmed the 61.8 % Fibonacci-resistance which you can watch marked in red in my chart, this level catapulted bitcoin again into the weak support region, such a clear Fibonacci-resistance confirmation should not be put into the background as it can overall confirm the further down move as such a confirmation seen already several times in the past not only in cryptocurrency but also in other assets. You can watch also that bitcoin confirmed the bear-flags both times with an initial move below lower boundary and the following confirmation of it which finally established the full bear-flag confirmation and activated the downside targets, such movements are normally seen in a distribution market where smart-money sells the accumulated pieces, this theory is underlined by the verification that bitcoin is still on possible overbought high value in the bigger timeframes.

Additionally, bitcoin is forming this important triangular-shape which is building up a symmetrical triangle you can watch marked with the orange triangle, such a formation can either break to the up or downside, the reality that this triangular-shape is forming within the bear-flag makes the establishment crucial for the next period which can confirm the bear-flag, principally there are some possible scenarios how this can play out, the first is that bitcoin confirms within the triangular-shape bearish to the downside and immediately falls below the 500-EMA you can watch marked in black and below the lower boundary of the bear-flag, a clear break to the downside of these levels will activate more bearish pressure, besides that it is possible that bitcoin firstly confirms support at the lower boundary and breaks the triangular-shape to the upside before finally confirming the bear-flag to the downside. There is a little possibility given that bitcoin confirms the triangular-shape to the upside and the bear-flag upside which can show up in a fake bear-flag but this possibility is currently quite marginal.

Taking all these factors into consideration we have a highly shacky environment currently in bitcoin and the whole other cryptocurrency market, there are coins that just going to the roof while bitcoin is making subtle moves to the downside as pointed out. The rallies in the altcoin market space are highly conjectural and can turn to the other direction certainly fast as such bursts already happened in this arrangement. For now, bitcoin will play a big role in this situation when it confirms the third major bear-flag there is a high possibility given that altcoins can follow. It will be highly interesting to watch how this plays out, compared to the rest of the global financial markets we have a highly speculative driven stock-market where many retail people rushing in while smart-money is staying out, such an unhealthy environment combined with a possible second corona expansion can lead to a heavy reversal with high pressure with an effect on global markets that can also decide cryptocurrencies conditions, therefore it is important to not take this scenario by side to do not get overwhelmed in this case and profit of possible occasions.

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

2020年7月17日

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Scenario A: Direct Confirmation Of The Bear-Flag

2020年7月17日

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Scenario B: Triangle Uphtrust Before Confirmational Bear-Flag Scenario