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Bitcoin Price Analysis: BTC/USD wedge pattern breakout or bull trap?

  • Bitcoin price recovery from the lows at $9,500 stalls short of $10,300.
  • The bullish scenario for Bitcoin is fading in the short term while long term analysis suggests a bull trap is in the offing.
Bitcoin Price Analysis: BTC/USD wedge pattern breakout or bull trap?
John IsigeJohn IsigeFXStreet

Spot rate: $10,130

Relative change: -56

Percentage change: -0.56%

Trend: Bullish

Volatility: High

BTC/USD daily chart

Bitcoin's incredible performance in the last couple of months follows an impressive breakout from a long-term falling wedge pattern that started its formation since the June 2019 highs around $13,884. The recovery has stepped above $10,500 in February, further confirming that Bitcoin's bullish phase ahead of the May 2020 halving event. However, the formation of a short term rising wedge pattern paints a picture of a bull trap that could get many traders and investors pants down. On the brighter side, the effects of the wedge pattern could be averted by pulling BTC above $11,000 and towards $12,000 in the near term.

BTC/USD 2-hour chart

The short term technical scenario is bearish for Bitcoin especially with upward movements have been restricted under $10,200. The RSI has started its retreat from the overbought and continues downward motion could attract more sellers to join the party. Support is expected at $10,100 while the 100 SMA at $10,057 is expected to anchor the price if losses aim at $10,000.

BTC/USD

Overview
Today last price10119.42
Today Daily Change-67.63
Today Daily Change %-0.66
Today daily open10187.05
 
Trends
Daily SMA209800.71
Daily SMA508875.66
Daily SMA1008202.14
Daily SMA2008887.59
 
Levels
Previous Daily High10285.3
Previous Daily Low9610.33
Previous Weekly High10511.86
Previous Weekly Low9707.96
Previous Monthly High9568.13
Previous Monthly Low6856.63
Daily Fibonacci 38.2%10027.46
Daily Fibonacci 61.8%9868.17
Daily Pivot Point S19769.82
Daily Pivot Point S29352.6
Daily Pivot Point S39094.86
Daily Pivot Point R110444.79
Daily Pivot Point R210702.52
Daily Pivot Point R311119.75

Author

John Isige

John Isige

FXStreet

John Isige is a seasoned cryptocurrency journalist and markets analyst committed to delivering high-quality, actionable insights tailored to traders, investors, and crypto enthusiasts. He enjoys deep dives into emerging Web3 tren

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