Bitcoin Has Reached The Resistance Of The Ascending Wedge
Since reaching a low on March 13, the BTC price has likely been trading inside an ascending wedge, which is known as a bearish reversal pattern. It is approaching the end of the pattern, which is projected to be on April 9 the latest.
I think the price will break down for several reasons:
Volume has been decreasing throughout the pattern, which is common in descending wedges. The volume is extremely small in the current candlestick, even though that is a bullish engulfing one. This is a bearish sign that suggests a lack of buying power.
The resistance line of the wedge also coincides with the confluence of resistance levels, such as the 50-day MA and the 0.618 Fib level of the entire downward move.
This suggests that the price is likely to eventually break down from the wedge and head towards the $5900 support.
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I think the price will break down for several reasons:
Volume has been decreasing throughout the pattern, which is common in descending wedges. The volume is extremely small in the current candlestick, even though that is a bullish engulfing one. This is a bearish sign that suggests a lack of buying power.
The resistance line of the wedge also coincides with the confluence of resistance levels, such as the 50-day MA and the 0.618 Fib level of the entire downward move.
This suggests that the price is likely to eventually break down from the wedge and head towards the $5900 support.
Please leave a LIKE if you enjoyed the analysis.
I don't think this is the correct pattern, even though it looks like a breakout and a test of the breakout level as support.
Since the ''breakout'' occurred four days ago, there has been virtually no movement, which is unusual considering the fact that the triangle has been in place for a relatively long period of time.
Also, volume has been minimal, highly unusual in continuation movements.