Bitcoin Price Key Highlights
- Bitcoin price has been trending higher on the 4-hour time frame, showing higher lows and higher highs.
- A rising wedge pattern can be seen when connecting these latest highs and lows, with price just coming off a test of resistance.
- Another test of support around the $425 area could take place and a bounce could be seen.
Bitcoin price has been trading inside a rising wedge pattern as bullish pressure is present but weakening.
Technical Indicators Signals
The 100 SMA is above the longer-term 200 SMA so the path of least resistance is to the upside. In addition, the 100 SMA is in line with the wedge support so it’s likely that it could keep losses in check. A dip lower could draw support from the nearby 200 SMA.
Stochastic is on the move down so sellers are on top of their game. However, the oscillator is nearing the oversold level, which means that bearish pressure is about to be exhausted and buyers could gain the upper hand soon.
Similarly, RSI is on the move down and is halfway towards the oversold area so there’s enough selling pressure to trigger a test of the wedge support. But if bears continue to stay in control,