The Bitcoin price broke out from a descending wedge an initiated a rapid upward move. However, it has failed to reach a close above a significant resistance area and has created three successive long upper wicks. It is trading inside a short-term symmetrical triangle.
Bitcoin Price Highlights
- The Bitcoin price is facing resistance from the 100-day MA.
- There is resistance at $9400, $10,000 and 10,800.
- Bitcoin is trading inside a short-term symmetrical triangle.
- There is support at $8700.
Looking at the daily chart, we can see that BTC has failed to reach a close above the 100-day MA or the resistance area.
It has created three long upper wicks in a row — a bearish development. If BTC fails to reach a close above $9600, we would expect a breakdown towards the previous breakout level near $8700.
In the short-term, BTC has been decreasing since reaching the top of $10,400. It has been trading inside a symmetrical triangle and is approaching the end of the pattern.
Aligning with the previous section, a breakdown from this triangle would likely take us to $8700.
However, even if a breakout occurs, we would expect a double top near the $10,000 succeeded by a breakdown towards the support area.
At the current time, there is no divergence present in momentum indicators to confirm the direction of the next move.
Good luck and happy trading! For yesterday’s analysis click here.
Disclaimer: This article is not trading advice and should not be construed as such. Always consult a trained financial professional before investing in cryptocurrencies, as the market is particularly volatile.
Images courtesy of Twitter, TradingView.
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