Bitcoin Hits 3 Month High But Prints Bearish Rising Wedge, What’s Next?

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  • BTC price has risen nearly 65% off its low in July
  • BTC Price has finally cleared the 200MA
  • RSI is printing a bearish divergence

Are BTC Bulls Already Exhausted?

Bitcoin price has finally broken out of its near 2 month range below $40,000. After nearly 3 months of boring downtrend, the bulls have awoken from their slumber & pushed BTC to nearly $50,000. The overall market has followed BTC’s lead as some alt coins have surged nearly 300% from their lows. After an $18,000 pump in 3 weeks, traders are wondering when a pullback will occur. It seems as if price has been losing steam the last few days which may indicate a short term pullback is near. This will allow BTC to continue rising in a healthy manner. 

Ever since the low of $29,000 was set, Bitcoin has surged nearly 70% to $48,000. The  BTC price action over the last week has formed a rising wedge, which is shown in light blue. This is a bearish pattern & will activate once price breaks the bottom trend of the pattern.

At the time of writing, BTC price has stalled at its major resistance zone found from $48,000- $50,000. For BTC to negate this bearish pattern it must break & hold this resistance zone. If this occurs , price will likely break the top trend of its rising wedge & potentially go on to surge past $50,000.

BTC Price Analysis: BTC/USDT 1 Day Chart

Just over the past week, bulls have managed to break two very important marks. The first being a long term trend line & the second being the 200MA which has acted as resistance for nearly 3 months. In the likely case that BTC fails to break over its major resistance zone, price will have support at $44,700, the long term trend line & the 200MA. All of these marks are in the same general area & breaking below these will cause a cascade of selling back to at minimum the minor support found at $42,500. The healthiest scenario would be for BTC to retrace back to the major support zone found at $38,000-$40,100. This would retest the previous two month resistance as support and will pave the way for $50,000+. 

  • The Stochastic RSI has been attempting to reenter the overbought territory but has failed to do so the last few days. This has created a bearish divergence which occurs when the price makes a higher high but strength makes a lower high.
  • If strength breaks below the 50 value, BTC will likely revisit $42,000s.
  • The regular RSI has also printed a bearish divergence & has formed a pennant the last few days. A break below the bottom trend will trigger the bearish rising wedge to play out. 

BTC Intraday Analysis

  • Spot rate: $47,000
  • Trend: Bullish
  • Volatility: High
  • Support: $44,800
  • Resistance: $48,000

Disclaimer

The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.

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