The most recently formed rising wedge shown in my previous bitcoin price analysis broke to the downside less than 24 hours ago. Despite the bearish break-down there seems to be no real bearish momentum, despite the large selling volume. Price action seems to have formed strong support at POC (Point of Control) around $11,300 and could be the level in which bitcoin price pivots and regains bullish momentum. The newly formed uptrend could propel price levels back towards the yearly high of $13,900.
Bitcoin Price 4 Hour Analysis
On the 4 Hour bitcoin price analysis chart for BTC we can see the rising wedge break to the downside that has taken place over the last 24 Hours. During this time RSI has taken a plunge back to median levels around 50.00. Despite the large sells displayed by the volume indicator there seems to be no real bearish momentum building up as the previous 4 Hour candles closed as a bullish hammer bouncing right off the POC (Point of Control) at $11,300. This is a very strong sign that a continuation of the current bullish trend is the most likely outcome.
New uptrend support has formed as a result of the most recent bounce as price action trades between POC and the 0.618 Fibonacci level at $11,850. Whether or not this uptrend holds over the coming days will largely dictate the outcome of BTC for the next few days and weeks.
If the newly formed uptrend breaks, due to the uptrend cutting right through POC it’s likely continuation of the short-term bearish trend resulting from the rising wedge break-down will cause price levels to drop back to support levels surround $10,000. Adversely, if the newly formed uptrend holds this could be just what BTC needs to continue upwards towards the yearly high.
BTC 30 Minute Analysis
On the 30 Minute bitcoin price analysis chart for BTC we can see more clearly the recent break-down. During this break-down, an intra-minute resistance has formed and broken as price levels touch the 50 MA around $11,780. It’s likely price levels will respect the newly formed uptrend around $11,400 and continue to rise. Volume has been extremely high over the last 24 hours which is likely why bears are struggling to gain any momentum with the current trend being so bullish.
Despite the large trading volume on BTC, there’s still little to no resistance in terms of sitting orders in the market above the current market price. Large volume and little resistance are two notorious catalysts for propelling any currency, stock, commodity back to their ATH’s and leaving many traders and investors in disbelief. RSI seems to be heading back towards overbought as bitcoin sits around a crucial decision point.
Given that Tether (USDT) is still actively impacting bitcoin’s trading price by issuing more and more of their currency into the market it would be quite surprising to see bears gain any form of control in the market over the coming weeks and months.
What do you think of this bitcoin price analysis? Do you think bitcoin price will break down below $11,400 support over the coming days? Please leave your thoughts in the comments below!
Images via Shutterstock, Tradingview
