BITCOIN, Magic Descending-Channel-Fractal A Second Time!

15 thg 1, 2022

Hello,

Welcome to this analysis about Bitcoin on the 2-day timeframe perspective. In recent times Bitcoin has shown up with highly bearish encounters to the downside to form its preliminary low at the 40.000 USD level. Nevertheless on the other hand simultaneously the utility of Bitcoin increased and many important technological developments in the Bitcoin field moved on such as classical economy providers like JP Morgan and Chase adopting Bitcoin technology or ex Twitter CEO Jack Dorsey's company building their own Bitcoin Mining Technology. All these developments are driving the Bitcoin utility and can have an important impact on a potential reversal. Besides that, the next country which is Tonga is looking to adopt Bitcoin as a legal tender which is also a pivotal determination that is likely to accelerate mainstream adoption. Together with the important fundamentals, I discovered a major fractal-formation Bitcoin is forming now that will be highly decisive in the upcoming times, therefore I discovered all the important levels and determinations to consider.

Bitcoin Major Descending-Channel-Fractal And The Phases From A To E:
Looking at my chart we can watch there how BTCUSD already once formed this massive fractal formation that moved in essentially 5 phases from phase A to phase E all together within this main descending-channel-formation. As Bitcoin now already initiated the descending-channel-formation similarly as within the first fractal this is already the setup to complete the fractal as Bitcoin already moved on with the phases A to D. As seen in my chart all these phases included the same elements so far, with Bitcoin setting up the fractal with a first bounce off the lower boundary in phase A, then moving on with two pullbacks off the upper boundary in phase B, after that forming the initial low with the high wick candle and then what also exactly already developed like in the first fractal is the pullback from the middle-range of the whole descending channel formation. Besides, there is the potential triple bottom forming like it already completed in the first fractal. All these phases have been already completed, what remains now is the bounce within the structure and breakout above the upper boundary to emerge with the phase E which will finalize the whole fractal with the breakout marked in green in my chart.

Upcoming Perspectives, Fundamentals And Determinations To Consider:
Taking all these factors into the consideration now it will be highly decisive on how Bitcoin actually forms a potential breakout above the upper boundary of this whole descending channel formation. When the breakout emerges appropriately then it will be a greatly determined setup for a major expansion-bounce as it is seen in my chart, if such a bounce emerges it will be a source for a continued determination with a potential continuation bull-flag to emerge as we have seen it already in the first fractal. In any cases there is a high likelihood given that Bitcoin shows up with higher highs. From a fundamental perspective we also currently see accelerated increased inflation in the US on 40 years high with 7.8% and in other regions even more. Such an inflation rate is likely to fuel hedges against inflation such as Bitcoin with money as people moving out of fiat into property values. From a fundamental perspective therefore there is a good ability for Bitcoin to complete this whole pattern and show up with the appropriate determinations also on the middle to long term basis in this case, it will be an important development ahead.

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!
"Good fortune is when opportunity meets preparation."

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