BITCOIN, Relief-Rally Incoming BUT Crucial Resistance Above!

Hello,

Welcome to this analysis about Bitcoin and the 4-hour timeframe perspective. As Bitcoin recently showed up with the heavy bearish dump to the downside which was the completion of the ascending wedge formation I mentioned previously Bitcoin now found initial support above the 44.000 USD level and is somewhat building up here nevertheless as I discovered now there are important structures that should not be kept from the desk as it is not unlikely that after such a dump which also printed a huge bearish engulfing candle on the weekly timeframe further downside happens, therefore I detected what are the important zones and upcoming determinations especially with consideration of the potential incoming relief rally.

When looking at my chart we can watch there how Bitcoin formed this massive ascending-channel-formation marked with the black boundaries, the lower boundary of this channel is where Bitcoin recently bounced and now moved into this ascending-triangle-development with the wave-count within this triangle. In this triangle the upper-boundary consists of this first resistance and in the triangle Bitcoin is forming the coherent Fibonacci-wave-count between the 43.000 USD and 47.000 USD level with the tightening range and the waves A and B completed, now with the remaining waves C till E this whole ascending-triangle can complete with a local upside-breakout which will be the origin for a wave-E-extension bringing Bitcoin to test the upper 50.000 USD resistance mark which is the main psychological resistance in this whole structure.

Once Bitcoin completed the triangle and emerged with the bullish developments to test the second resistance it will be significantly pivotal on how Bitcoin reacts to this zone because when there emerges a strong bearish rejection to the downside this can lead to a breakdown below the lower boundary of the channel and in consequence of this Bitcoin will continue till the next lower supports are reached at around the 40.550 USD level. Otherwise when this does not happens and Bitcoin stays above the upper-boundary possibly showing further increased bullish signs this can lead to the building of a further bigger ascending-triangle that can form a similar breakout to the upside just in a broader aspect, in any case, it will be necessary to keep patient and elevate on how Bitcoin approaches this crucial second resistance because this will determine further conclusions.

In this manner, thank you for watching the analysis, it will be great when you support it with a like, follow and comment for more upcoming market analysis, all the best!

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