Over the last 6 Days Bitcoin has seen a 25% pull-back to visible range support around $9,800 from the recent high of $13,200. During this pull-back, another falling wedge has formed visible on all timeframes and could propel price levels back up towards visible range highs over the coming weeks.
Bitcoin 4 Hour Analysis
On the 4 Hour chart, we can see the two falling wedges that have formed within the same price range as each other. Maxx Momentum indicator also shows similarities as momentum turns red throughout the later stages of the falling wedge towards the breakout. Both the 50MA and 200EMA have been gradually moving closer to each other over the last few weeks showing that the current trading range for BTC is very strong could very well be a period of consolidation before another big move to the upside.
Within the last few hours, price action has broken out of the most recent falling wedge as price levels look to retest the breakout point at $10,700. Both moving averages have also cut through and have broken out of the falling wedge. Volume has remained quite high and also appears to be descending which is an indication of strength around current price levels, as typically descending volume causes price levels to break down out of the trading range. I touched on the current trading range in more depth in my previous analysis here.
Bitcoin 1 Hour Analysis
On the 1 Hour chart, we can now see a close-up image of the recent breakout around $10,700. There’s been no real increase of volume during the breakout, leading me to believe bearish momentum that resulted in the falling wedge being formed has run out of fuel.