BITCOIN, Bounce-Off MAGIC 350-Day MA Can Lead TURNAROUND-RALLY!

14 thg 12, 2021The 350-Day Moving Average (MA) is an important Moving-Average for Bitcoin as it indicated several turnaround-rallies in the past once Bitcoin tested this EMA and properly bounced off the EMA to the upside. In the current situation, we can watch a very similar dynamic taking place and besides that, I discovered other indications that can lead to the main turnaround-rally when Bitcoin shows up with the further proper establishments. From a fundamental news perspective, we see the Bitcoin Network and technological adoption growing more and more, in this case, we can watch developments such as german saving banks to enable Bitcoin adoption to almost 50 Million clients, as well as the crypto wallet adoption growing. These trends are positive and seem to provide a positive fundamental outlook to Bitcoin and its development however on other side we should not keep the regulatory pressures out the sight that is still omnipresent, in this case, it is worthwhile to look at the technical situation which I do in this analysis.

Bitcoin And The MAGIC 350-Day-Moving-Average-Bounce-Indication:
As when looking at my chart we can watch there how Bitcoin in recent times after bouncing off the 350-Day Moving-Average as it is seen in my chart settled up to form a major rally to the upside and in this rally reached out the 2.618% Fibonacci-extension, in this case, the 350-Day Moving-Average-Bounce can be clearly marked as an origin of this major bounce to the upside. Once this bounce occurred Bitcoin moved on to increase bullish volatility-price-action and reach out to the appropriate final 350-day moving-average-bounce and Fibonacci-extension target-zone marked in green in my chart. Looking at the current situation we can watch a very similar development going on with Bitcoin already bouncing within the 350-Day Moving-Average and forming the wave-count-setup together with the orange box marked in my chart which is likely to mark the beginning of this main turnaround-rally which will finally take place once Bitcoin broke out the orange box and sets up for the further increasing volatilities ahead of the next times.

Upcoming Determinations And What We Should Conclude In The Current Situation:
Taking all these factors into the consideration here there are important determinations and conclusions to be taken out of this whole development, as when Bitcoin manages to complete this whole pattern again the target-zone of it will be between the 69.000 and 72.700 USD range, once this target-zone has been reached when the pattern finalizes anew the situation needs to be appraised again. For now, it will be highly pivotal to watch out how this orange box with the wave-count within the box finally completes to come up with the further determinations and the further conclusions we can project in this case. It is highly important to keep patient and do not over hesitate the market into a bearish scenario direction as it is often the case in such patterns that the market first needs to find an appropriate trend before moving into the direction that is set up for the market, so also with Bitcoin and its current setup forming, we will see ho it completes and then come to the further determinations, it will be an important journey ahead.

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"The past, like the future, is indefinite and exists only as a spectrum of possibilities."

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