NEW!Incredible offer for our exclusive subscribers! Read More
BTC

Bitcoin Price Analysis: BTC Breaks Beneath Rising Wedge, Where is The Target?

1 Mins read

Bitcoin is down almost 5% today as the primary cryptocurrency broke below a rising wedge formation. BTC reached as high as $59,600 yesterday, touching the upper boundary of the wedge. However, the steep dive started from there.

cryptonews.net

As mentioned yesterday, bitcoin was trading inside a rising wedge pattern, which in most cases tends to break to the downside. This is what happened this time as well.

After breaking toward the bearish side, BTC continued to plummet but managed to find solid support around the $54,755 (.382 Fib) level – best seen on the following 1-hour chart.

Looking at the longer-term chart, BTC still looks healthy, but it also appears to be struggling to stay above the 20-day moving average line. The last time bitcoin saw a full-body candle below the MA-20 line was mid-April, and it lost over 20% following the breakdown (reaching April lows at around $46k – $47k).

Once the rising wedge was broken, and together with the global markets’ 2-day bearishness, we might see bitcoin retesting lower support zones before the continuation of the uptrend.

BTC Price Support and Resistance Levels to Watch

Key Support Levels: $55,120, $54,755, $54,000, $52,375, $51,800.

Key Resistance Levels: $56,000, $56,750, $58,355, $60,000.

Looking ahead, if the bears push beneath $55,120 (20-day MA), the first support lies at $54,755 (.382 Fib). This is followed by $54,000, $52,375 (.5 Fib & April support), $51,800 (.618 Fib), and $50,000.

On the other side, the first resistance is expected at $56,000. This is followed by $56,750 (the significant level of the 50-day MA), $58,355 (Feb 2021 highs), the falling trend line, and $60,000.

The RSI has now slipped beneath the midline, indicating the bearish momentum is starting to increase. If it continues lower beneath 50, the bearish momentum is likely to drive BTC back toward $50,000.

Bitstamp BTC/USD Daily Chart

Bitstamp BTC/USD 4-Hour Chart

Bitstamp BTC/USD 1-Hour Chart

Related posts
AltcoinsBTCBusinessCryptoETHMiningNewsOtherStock

Binqwix.com collaborates with Stake.com to offer Crypto services for its users

1 Mins read
Binqwix.com has collaborated with Stake.com to give crypto gamblers with a top-tier exchange where they can deposit, sell, and even convert Crypto…
AltcoinsBTCBusinessCryptoETHOther

Tradex-wallet.com staking platform with the best percentages or is it a temporary phenomenon?

1 Mins read
As it became known, tradex-wallet announced the announcement of a new staking program, rewards and large payouts for staking, the platform raffles…
AltcoinsBTCCryptoETHOther

Cryptwex & 15 More Crypto Exchanges Face Ire of South

2 Mins read
Sixteen international crypto exchanges. Including and the Mexican heavyweight MEXC. Have landed in hot water with Cryptwex.com financial regulators. For failing to comply with local guidelines….
Power your team with InHype

Add some text to explain benefits of subscripton on your services.

Leave a Reply

Your email address will not be published. Required fields are marked *