By Ifaenyi Egede (Nigeria)
If you are conversant with the Bitcoin pattern movement since the beginning of the month, you would have discovered that it has been moving in a downward trend. Even with the price hovering around the $9,400-$9,500 region, it is considered as a price rise on a short run basis. The long term movement pattern will not be seen as a surge until it moves past the $10,000 resistance mark.
With the exact price not yet confirmed as a result of the volatility, crypto analyst @crypto_rand noted that the price is moving around a descending wedge. He further said that this trend has always been happening in previous years, and it has always resulted in a price breakout. Discussing the development, @crypto_rand says, “I don’t get all the #Bitcoin panic. After the first falling wedge breakout, it’s consolidating into a major one. Macro-structure remains bullish”.
Past Bitcoin breakouts
In 11 days between May 14 to May 27, Bitcoin price made movements inside a descending wedge which it finally broke out of on May 27. After the breakout, Bitcoin witnessed massive surges to post a price of within the $10,000 region until June 1, when it resumed its previous bearish run. Currently, the price has not been stable for some time and the small movements are just price corrections. However, the resistance is not clear yet as Bitcoin has only tried to breach the previous one on just two attempts.
Also read:With the two wedges not posting bullish returns, the volume pattern between the both of them was very dissimilar. In the wedge movement that happened in May, the pattern showed a slower bearish movement especially after it touched the resistance on two occasions. The second wedge that happened saw the price move at a higher pace than the previous wedge with the price testing resistance frequently. This new development doesn’t mean that a breakout is won’t happen, it shows that the pattern between the two is not similar.
Future movements of Bitcoin
Bitcoins resistance is still set at around the $9,800-$10,000 regions that it was previously at. If the price eventually breaks out of that resistance region, then it would mean that the asset is bullish on a big scale in the long run. According to the movement inside the wedge, the price of BTC seems to have reached the 50-day MA, with a movemove above the average volume. If the price should break out, then it means that it would move out of the resistance region.
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