Hello traders,
If you remember from my previous analysis, I mentioned there could be rising wedge bearish breakout, and we saw a dump yesterday.
Looking at the 4 hour chart, we can see that Bitcoin is testing the bottom of this big rising wedge at the moment, and this pattern is very similar to what we observed on Feb 11th. In classical technical analysis, if we see rejection from this trendline, further downside pressure is expected. There is a very high probability that we see the rejection due to the fact that $4000 is such a strong psychological resistance, and weekly MA20 is around $4000.
The immediate support is $3900, but I have a feeling that we need to test $3750 again.
Happy trading!
If you remember from my previous analysis, I mentioned there could be rising wedge bearish breakout, and we saw a dump yesterday.
Looking at the 4 hour chart, we can see that Bitcoin is testing the bottom of this big rising wedge at the moment, and this pattern is very similar to what we observed on Feb 11th. In classical technical analysis, if we see rejection from this trendline, further downside pressure is expected. There is a very high probability that we see the rejection due to the fact that $4000 is such a strong psychological resistance, and weekly MA20 is around $4000.
The immediate support is $3900, but I have a feeling that we need to test $3750 again.
Happy trading!
Bitcoin confirmed bottom of the ascending trendline as a resistance, but bulls were somewhat stubborn in last few days (they finally gave up though)