[Bitcoin] 4 strong resistance lines + a large bearflag / large [head and shoulders] formation Good evening dear friends, I have made a new analysis for [Bitcoin](//www.tradingview.com/symbols/BTCUSD/) but the last one is still perfecly valid so best look at them both.Here you see a 12 hours chart and there are a few remarkable things here.First, the concentrated point where no less than 4 [trend lines](//www.tradingview.com/ideas/trendline/) meet.The top of the bearflag, a downtrend line, the top of the [bearish wedge](//www.tradingview.com/ideas/risingwedge/) and the very important 1,618 fib level.We also already saw that the [Rsi](//www.tradingview.com/ideas/relativestrengthindex/) and Stochastics made negative divergences and also a declining [volume](//www.tradingview.com/ideas/volume/) can be seen during the rise.As a matter of fact, the [volume](//www.tradingview.com/ideas/volume/) itself is also making a [bearish](//www.tradingview.com/ideas/bearish/) divergence as it was falling while the price was rising.3 possible scanarios.1.
[Bitcoin](//www.tradingview.com/symbols/BTCUSD/) breaks through resistance at 42500 after a minor correction and this is obviously very strong and very [bullish](//www.tradingview.com/ideas/bullish/) .Buying can be done on a retest of this level or immediately for the breakout traders.Note that there should be above average [volume](//www.tradingview.com/ideas/volume/) and a strong green candle.This would imply that all negatives are just invalid which would be unlikely unless there is intervention by the big funds and banks who want the price of [Bitcoin](//www.tradingview.com/symbols/BTCUSD/) to go up.2.Bitocin corrects to 32500 – 34500 then rises again and starts to take a new attempt to break through resistance.3.[Bitcoin](//www.tradingview.com/symbols/BTCUSD/) sinks to 29556 which is immediately the bottom of the bearflag.
We are not that far yet so at that point we will look again at where it may go and which new patterns are formed.If we zoom out, we still see the very large bearflag which is also the right shoulder of a main shoulder formation (formed from January until now!).This should not be discounted as the bearflag was formed over a period of almost 3 months.[Bitcoin](//www.tradingview.com/symbols/BTCUSD/) has also has broken the [bearish](//www.tradingview.com/ideas/bearish/) [rising wedge](//www.tradingview.com/ideas/risingwedge/) and it has 31110 as its target.
The [RSI](//www.tradingview.com/ideas/relativestrengthindex/) has peaked and even made a negative divergence.China’s [central bank](//www.tradingview.com/ideas/fundamental/) reaffirmed for the second time that it wants to ban Cryptos because it poses a danger to [citizens](//www.tradingview.com/symbols/NYSE-CIA/) due to the high [volatility](//www.tradingview.com/ideas/volatility/) and also the high power consumption for [Bitcoin](//www.tradingview.com/symbols/BTCUSD/) mining.On top of that, the world leaders want to regulate crypto currencies so everyone has to be registered.People who cannot prove where their capital comes from will have a huge problem! Especially the latter is a very dangerous point for [Bitcoin](//www.tradingview.com/symbols/BTCUSD/) and cryptos in general.
This is because a lot of capital is just anaonymous right now.Can you imagine what will happen with the price if this regulation will come in force? What will happen now for the short term will become clear in the coming days and weeks.[Bullish](//www.tradingview.com/ideas/bullish/) on a breakout above 42500.Below that, keep an eye on how far [Bitcoin](//www.tradingview.com/symbols/BTCUSD/) can correct based on the Fib levels and reversal patterns.If [Bitcoin](//www.tradingview.com/symbols/BTCUSD/) drops below the 28800 low, the chances of a further bull market are almost zero.It is impossible to say exactly what is going to happen and what scenario it is going to be because this has to be validated with the price trend.Based on the price movement, we can then take action.In this market, make sure you have close stops because that’s how things can go wrong and that way you can limit any loss.
— > In this market I advice to use tight stops.> Dear friends please follow me for updates and give me support with a like 👍 if you like me to continue this work.Thanks 💚 Please check this out also because it is part of this analysis too: Most Related Links : [thereliablenews](/) [Governmental News](/government/) [Finance News](../../).
