Hi friends, hope you are well, and welcome to the new update on Bitcoin (BTC).
Brokedown the support of $39500:
Previously we have seen that the resistance of the symmetrical triangle turned into the support, the price action retested the previous resistance as a support and moved to the upside, broke out the next price level resistance at $39,500. We had a closing above $39,500 but while the price action moved back again to retest this previous price level resistance as support, the price action could not save this support and moved to the downside and now we are moving down.
Breaking down the wedge's support:
On the daily time frame chart, the price action is breaking down the support of the rising wedge pattern. But if the price line will also break down the additional support of the daily 25 simple moving average which is at approximately $37K then there will be more chances that the BTC will re-test the $30K. Support. For this, we need to wait for the daily closing below the 25 SMA. But if the closing will be above the 25 SMA then the pricline of the king of all cryptocurrencies can move back inside the wedge and can hit the resistance which is approximately at $43K.
Conclusion:
Even though, the price action of Bitcoin has broken down the support of the Rising wedge pattern. But we should wait for the daily closing. If the candlesticks will be closed below the simple moving average and the point of control of the volume profile then a move to $30K can be expected, otherwise, a reversal move can take the Priceline back into the rising wedge pattern.
Note: The above idea is for educational purposes only. It is advised to diversify and strictly follow the stop loss, and don't get stuck with trade.