Hi friends, hope you are well and welcome to the new update on Bitcoin (BTC).
Rising and falling wedge patterns:
For the last four days price action of Bitcoin is moving at the resistance of a falling wedge pattern and at the same time, the priceline has formed a smaller rising wedge pattern as well. At the moment the candlesticks are at the support of the rising wedge and also at the resistance of the falling wedge as well. Today’s candlestick is likely to break out the resistance of the falling wedge. However, it depends on the closing of the candlestick in the daily time frame. If it will be closed above the resistance on the daily time frame then we can have a confirmation for the breakout. In case of breaking down the support of the rising wedge pattern, we can see a re-test of the support of a bigger falling wedge which is $28500. But there is another price level support below the support of rising wedge which is at $33500. If the price action breaks down the support of the pattern then we should also look at this price level support as well.
The volume profile:
if we place the volume profile on the complete price action moving in both at patterns (bigger falling wedge and smaller rising wedge )then it is showing very weak interest of the traders beneath the support of the rising was. Therefore, if Bitcoin will break down the support of the rising wedge then there are strong chances for the price reversal and it may bounce back from the support of $33500. And the volume profile is also showing the interest of the traders even above the resistance of the falling wedge pattern which can be a signal for a breakout.
Different indicators:
In the weekly time frame and price, action is accumulated about the 50 simple moving average and a very strong support zone from $31000 to $28800. After placing the stochastic RSI oscillator we can observe that for 18weeks it is moving in the oversold zone. This is the longest time period at the stochastic RSI to move in this zone. Now if we place the moving average convergence divergence ( MACD ) indicator, it has also turned weak bearish from strong bearish. So the weak bullish signs have appeared in the long term.
Conclusion:
On the daily time frame and even on the short-term time frame charts, priceline of Bitcoin is going through a very important time period. Having the support of a rising wedge and also struggling to break out the resistance of the falling wedge pattern as well. But in the long-term, we're still bullish and the indicators which previously turned strong bearish have turned weak bullish.
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