Bitcoin Price Analysis: BTC/USD eyes $11,200 amid rising wedge breakdown
- Bitcoin sees chart-driven sharp selling on Saturday.
- Bears return amid a rising wedge breakdown on the hourly chart.
- Healthy support awaits at $11420 levels, with bearish RSI.
Bitcoin (BTC/USD) sellers return with pomp and show this Saturday, breaking the consolidation seen around $11550. The most favorite crypto coin reverses a part of Friday’s rebound, having faced rejection just shy of the $11,600 mark. Bitcoin posts small losses to trade around 11,460, at the press time. The market capitalization of the No.1 digital asset stands at $212.57 billion.
Technical Overview
BTC/USD: Hourly chart
As observed in the hourly chart, BTC/USD has charted a rising wedge breakdown in the last hour following a break below the critical cushion at $11,535/530, the confluence of the rising trendline support and 200-hourly Simple Moving Average (HMA).
Selling pressure intensifying on the bearish break, as the price pierced through the 21-HMA support at $11,507, falling as low as $11,440.
Despite the quick drop, the bulls managed to stay above the next powerful support at $11,420, which is the convergence of the horizontal 50 and 100-HMAs.
A break below the latter will call for a test of the pattern target sub-$11,200 levels.
Meanwhile, any pullbacks will meet initial resistance at the 21-HMA, the previous support.
Acceptance above that level, the bulls will look to reclaim the fierce $11,535 cap. The path of least resistance, however, appears to the downside, as the Relative Strength Index (RSI) remains in the bearish region, at 44.20, pointing to additional losses.
BTC/USD: Additional levels to watch
Author
Dhwani Mehta
FXStreet
Residing in Mumbai (India), Dhwani is a Senior Analyst and Manager of the Asian session at FXStreet. She has over 10 years of experience in analyzing and covering the global financial markets, with specialization in Forex and commodities markets.
