Bitcoin is moving toward a colossal breakdown likely to test lows under $53,000.
A falling wedge pattern on the four-hour chart presents a bearish outlook for BTC.
Bitcoin has for some time been stuck in a narrow range between $58,000 and $59,500. Attempts to hit highs above $60,000 have been thwarted. At the time of writing, BTC is teetering at $58,700 while facing a bearish building momentum.
The four-hour chart shows Bitcoin trading at the apex of a rising wedge pattern. This pattern is considered bearish in technical analysis. It forms after a considerable drop in price followed by a minor recovery.
Two trend lines are used to develop the wedge, whereby one connects a series of ascending highs while the other links climbing lows. A breakdown is anticipated before the trend lines converge.
Note that an increase in volume confirms a breakdown. The downside target is usually precise and is measured from the pattern’s highest to the lowest point. For instance, the bellwether cryptocurrency is likely to slide by over 10% and revisit the lows slightly under $53,000 if the technical pattern is confirmed.
At the same time, overhead pressure is bound to increase the longer Bitcoin stays under $60,000. Moreover, a daily close beneath $58,000 may lead to more losses toward $53,000. All the applied moving averages, including the 50 Simple Moving Average (SMA), the 100 SMA and the 200 SMA, are in line to cushion BTC from the massive drop.
BTC/USD four-hour chart
Read more
BTC/USD price chart by TradingviewOn the upside, the Moving Average Convergence Divergence ( …
Story continues on CoinGape
Menu