Trend Analysis:
Since the Bitcoin price plummeted to its key support of ~$9,400 we are noticing a descending wedge being formed on the 4h chart. If this is indeed a descending wedge, then we could be gearing up for a break to the next resistance level of about $10,600. The support we are on is critical, if the price breaks below the support, we could see the price dropping to the low 8,000s.
There could be a few jumps and drops, but a break out looks to be near. If the price breaks above the upper trendline of the triangle, get ready for a big move.
Technical notes:
The RSI is crawling out of the overbought range and seems to have a bit of momentum. It has recorded a higher low since it rose from the overbought range which could indicate a bullish failure swing, if true, then we could see a new short-term high. The EMA is well above the price right now which shows we have lost a lot of momentum the last few days.
Conclusion:
If the price breaks below the critical support, then it will likely drop to the low $8,000s if it can break out of the wedge upward, we could see clear skies up until $10,600.
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Happy trading!
Since the Bitcoin price plummeted to its key support of ~$9,400 we are noticing a descending wedge being formed on the 4h chart. If this is indeed a descending wedge, then we could be gearing up for a break to the next resistance level of about $10,600. The support we are on is critical, if the price breaks below the support, we could see the price dropping to the low 8,000s.
There could be a few jumps and drops, but a break out looks to be near. If the price breaks above the upper trendline of the triangle, get ready for a big move.
Technical notes:
The RSI is crawling out of the overbought range and seems to have a bit of momentum. It has recorded a higher low since it rose from the overbought range which could indicate a bullish failure swing, if true, then we could see a new short-term high. The EMA is well above the price right now which shows we have lost a lot of momentum the last few days.
Conclusion:
If the price breaks below the critical support, then it will likely drop to the low $8,000s if it can break out of the wedge upward, we could see clear skies up until $10,600.
Follow me on Twitter for more TA!
Happy trading!
