Bitcoin Price Analysis: Falling Wedge Spotted At $10,000
Bitcoin price levels quickly bounced off the triangle support at $9,400 back up to just below $11,000 at the beginning of September. Since then BTC has formed a falling wedge and looks poised for another move up.
Bitcoin Price 1-Hour Analysis
On the 1 hour chart for XBT/USD, we can see the falling wedge that has formed off the back of the most recent explosive move to the upside. During which, price levels rose from $9,400 to just below $11,000 as displayed in my previous analysis on bitcoin. RSI can be seen visibly creating low lowers throughout the last 10 days.
Despite price levels forming a falling wedge volume levels are much higher than they were at the end of August. This paired with the fact price levels haven’t dumped yet, just steadily decreased indicates no real bearish momentum has built up yet. Volume levels are reasonably high but consist of very random spikes that are mostly selling pressure. More consistent buying pressure needs to come to fruition in order for bitcoin to see a bullish breakout of the falling wedge and re-test the breakout point at $10,500.
200 EMA can be seen visibly crossing down over the 50 MA within the falling wedge which is a good indication of further downside to come.
BTC Price 1-Day Analysis
On the 1 day chart for XBT/USD, we can see the prevailing asymmetrical triangle that has formed as a result of the insane growth bitcoin saw throughout June. Three higher lows and three lowers highs can be visibly seen forming the triangle. With the range low at $9,150 and the range high at $13,900. The 200 EMA on the daily chart has yet to catch up with the market price but appears to be heading in that direction. If price levels dump below the range low the 200 EMA will be a strong support level to look out for.
The breakout zone lies just above the overhead resistance line of the triangle around $10,500 with confirmation of a breakout around $10,700. If price levels breach these levels with increasing volume it’s highly likely BTC will at least attempt a re-test of the range high at $13,900, with a strong chance of creating a new yearly high.
Key support levels to look out for if bitcoin price decides to break-down are $8,800, $8,200, $7,500 and $7,150. There is a lot of resting buy orders in the market sitting at either of these support levels making them key areas for bounces and take profit targets on shorts.
Do you think BTC price will crash below the asymmetrical triangle support? Please leave your thoughts in the comments below!
This article is strictly for educational purposes and should not be construed as financial advice.
Images via Shutterstock, BTC/USD charts by TradingView
The post Bitcoin Price Analysis: Falling Wedge Spotted At $10,000 appeared first on Bitcoinist.com.