The Bitcoin price is trading inside a minor range between $7150-$7350. It broke out from a descending wedge and is currently heading towards the resistance line. The price has also created a double bottom at $7150, giving more plausibility to the possibility of an upward move.
Bitcoin Price Highlights
- The Bitcoin price broke out from a descending wedge.
- It has possibly made a double bottom.
- The price has previously broken down from a symmetrical triangle.
- It is trading in a range between $6900-$7900.
Bitcoin’s Wedge Breakout
The Bitcoin price broke out from the short-term descending wedge it had been trading in for roughly two days. The breakout transpired with very low volume.
The price increased all the way to $7280 before decreasing slightly. The outlook still remains bearish, mostly because of the bearish candlestick with a massive upper wick that went all the way to $7360.
The Bitcoin price previously broke down from a symmetrical triangle.
After doing so, it has possibly made a double bottom, which is combined with a bullish divergence in the RSI. The first bottom was sharp while the second is shaping up to be more gradual. Additionally, the presence of long wicks below $7200 solidifies the support — indicating buying power below this level.
However, due to the recent breakdown, it is possible that any upward move resulting from this double bottom is merely a retest of the previous ascending support line.
If the Bitcoin price begins an upward move that goes the entire height of the pattern, we would definitely revisit the highs of the range at $7900 and possibly move higher towards the next resistance area at $8100.
A breakdown below $7100 would invalidate this possibility and instead cause the Bitcoin price to drop to the range low at $6900 and possibly lower.
To conclude, the Bitcoin price has broken out above a descending wedge amidst the creation of a double bottom. However, the breakout was very weak, indicating that the ensuing upward move might not last much longer.
For our previous analysis, click here.
Images courtesy of TradingView.
Source: Be In Crypto