Here Is Why BITCOINS B-Wedge Confirmation Can Still Play Out!

2020年7月2日

Hello Traders Investors And Community, welcome to this update-analysis where we are looking at recent events, the current market-price-formation and what we can deduce from it to examine further outcomes of bitcoin. As bitcoin has successfully contributed the third historical bitcoin halving it is now trading above the important broadening wedge formation upper trend line which I already mentioned in previous analysis and which is playing a big role in the possible big broadening wedge bitcoin is forming, if you did not see this analysis already I highly recommend that you watch it when going to my account and look at the analysis. Furthermore, the post-halving-cycle I mentioned played out as expected and bitcoins initial dip since the halving developed like it was seen several times in past bitcoin halving history, this fact can mean that bitcoin is ready to start the third meaningful halving cycle but as the dips in past bitcoin post halving dips where longer it can also mean that the post halving dip is not over yet.

As you can see in my chart bitcoin is building several channels above the higher boundary of the potential broadening wedge which should be distinguished firstly it is the uprising parallel uptrend channel with lower highs and higher highs which is normally a bullish construction. Secondly, it is the broadening wedge confirmation channel you can see marked in yellow in my chart which is actually marking the broadening wedge confirmation as you can see it bounced several times at the falling trendline which can mark the final confirmation of the broadening wedge as I already mentioned it in the past analysis. When this level successfully holds sustainable this can be the final step for bitcoin to confirm bullish minimum on the smaller timescales and therefore point on the overall broadening wedge target zone you can see in my chart, therefore, it is important that bitcoin holds this primary falling support line and confirms it after that bitcoin has to show bullishness and take out the support/resistance level which will finally confirm the broadening wedge and activate the broadening wedge target.

Initial Analysis According The Bitcoin Broadening Wedge Subject (4-Hour Timeframe):

Overall we can examine now that bitcoin is in a good state to confirm the bullishness but it is also possible that bitcoin dips more before moving up higher which is still possible as the broadening wedge confirmation can also play out firstly in the huge channel before moving up again, in this case, a definite fall below the upper boundary of the broadening wedge will invalidate the confirmation and will send bitcoin to lower levels where it has to prove is the support can hold to form the further uptrend. This range can you see in my chart marked with the lower support level where bitcoin by the way has Fibonacci-supports. We will see how this is playing out, the good thing is that both scenarios can be traded accordingly on the swing-scale perspectives, the bearish scenario with a clear break of the falling support line and high volatile movement below it and the bullish case with a clear break of the resistance at 10.000 and further upward movement, trades on the smaller timeframes are also possible but this should be done in an advanced manner with proper money management which traders should decide on preferences to profit in markets.

In comparison with the stock market, the next weeks and days will show how strong bitcoin is correlated with the S&P and if there can be anticyclical similar to gold as bitcoin can also be digital gold used to hedge from a stock market decline as it was seen also in the past where bitcoin moved higher while stocks dipped which I already pointed out in analysis according to this subject. As the corona pandemic seams to decrease and some countries contributing successfully against it the health crisis can decrease in its big role and impact on financial markets but there is still a big discrepancy between real economy and stocks which is an unhealthy environment and therefore can also affect bitcoin in away. We will see how this plays out and if a possible rally can also be fundamentally backed which will lie an important ground stone for a prosperous and solid market environment otherwise it is still important to keep the reverse setting and be prepared when a smaller or bigger correction sets in which means to not rely upon mere speculation like it is seen too often these days.

In this manner, thank you for watching, support for more market insight, have a great day and all the best to you!
The amount of good luck coming your way depends on your willingness to act.

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