A medium-term rising wedge that had formed on BTC’s daily chart over the past several weeks may materialize in the next few days. BTC has been in a steady climb over the last 7 days, but has not been able to enter into a convincing upwards move. This could be the result of diminishing pressure from buyers.
The daily Relative Strength Index (RSI) indicator supported the idea that bulls have exited BTC’s charts. The RSI line was positioned below the RSI Simple Moving Average (SMA) line. In addition to this, the RSI line was sloped negatively, suggesting that sellers are still chipping away at bulls’ advantage.
There is also greater downside potential than upside potential for BTC, given the market leader was near overbought territory. Traders may look to pounce on this opportunity to short the cryptocurrency. Supporting this bearish thesis is the Moving Average Convergence Divergence (MACD) line, which crossed below the MACD Signal line. This is usually seen as an indication of a bearish trend reversal.
Should these technical flags be validated in the next 24 hours, BTC may retest the immediate support level at $34,100. This will also place BTC outside of the medium-term chart pattern. Subsequently, the cryptocurrency’s value may drop below $34,100 to potentially continue falling to $31,400 in the following few days. This bearish thesis could be invalidated if BTC breaks above the rising wedge pattern. In this more bullish scenario, BTC could look to overcome the $36,900 barrier.
The daily Relative Strength Index (RSI) indicator supported the idea that bulls have exited BTC’s charts. The RSI line was positioned below the RSI Simple Moving Average (SMA) line. In addition to this, the RSI line was sloped negatively, suggesting that sellers are still chipping away at bulls’ advantage.
There is also greater downside potential than upside potential for BTC, given the market leader was near overbought territory. Traders may look to pounce on this opportunity to short the cryptocurrency. Supporting this bearish thesis is the Moving Average Convergence Divergence (MACD) line, which crossed below the MACD Signal line. This is usually seen as an indication of a bearish trend reversal.
Should these technical flags be validated in the next 24 hours, BTC may retest the immediate support level at $34,100. This will also place BTC outside of the medium-term chart pattern. Subsequently, the cryptocurrency’s value may drop below $34,100 to potentially continue falling to $31,400 in the following few days. This bearish thesis could be invalidated if BTC breaks above the rising wedge pattern. In this more bullish scenario, BTC could look to overcome the $36,900 barrier.
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The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.