Hi Community,

Since Bitcoin in recent times increased with bullish volatility and initially pulled back to test previous ranges it is forming an interesting formational structure here that is likely to be worthwhile for the incoming price-action-events. Mainly we can watch an increased demand coming into Bitcoin and the whole Cryptocurrency market as geopolitical events paired with Inflation point to people increasing their trust in Bitcoin and Cryptocurrency, we can see this manifested in real volume and trading activity which increased over recent times. Also from a technological-adoption- and mainstream-adoption- perspective there is an acceleration of adoption moving forward, such as Mexico as the second official country after El Salvador considers making Bitcoin a legal tender. Besides that eBay as a main established e-commerce platform is looking to adopt Bitcoin and Cryptocurrency as a payment method. These developments are positive indications for a long-term bullish perspective and are likely to contribute as such if there are no regulatory, restrictionary, economic, technological or environmental events that can alter this bullish long-term sentiment again, as Traders it is necessary to consider these determinations to have a rounded approach to the market.

Looking at my chart now we can watch there how Bitcoin is forming a central formation here which is a descending-triangle-formation, such a descending-triangle-formation is an efficient indication for concluding a reversal when the right price-action settles. Therefore as Bitcoin already completed the coherent wave-count reaching from A to C within the formation and is now approaching the lower boundary of the formation in which it has appropriate support determined by the lower boundary of Bitcoins main ascending-channel together with the 300-EMA marked in blue, there is a solid potential given that Bitcoin has the ability to form the decisive bounce above the upper-boundary of the formation in this range. Once such a bounce has emerged it will be the technical confirmation and completion of the descending-triangle-formation and it will point to the final setup from where Bitcoin has the right fundament to build upon, besides that this will also validate the target-zones seen in my chart. Once the target-zone of 44.500 USD has been reached Bitcoin has to show how it moves into this zone and if Bitcoin manages to form a continuation-formation in this area because when this happens Bitcoin has the potential for forming a wave-C-extension when it manages to breakout into the bullish-continuation-zone.

In this manner, thank you for watching the analysis, all the best!
“The day of fortune is like a harvest day, We must be present when the corn is ripe.”

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