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.
Spot rate: $10,130
Relative change: -56
Percentage change: -0.56%
Trend: Bullish
Volatility: High
BTC/USD daily chart
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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
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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.
Author
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
