Bitcoin price analysis: Rising wedge breakdown exposes Thursday’s low

Bitcoin, the world’s most widely traded currency, resumed its recent downward momentum on Saturday, having witnessed a temporary reversal on Friday. The recent recovery lost legs just shy of the critical 12k mark, as the sellers returned amid a broader market sell-off.  The No. 1 coin shaved-off gains seen over the last 24 hours and eroded nearly 2% so far this Saturday, still maintaining a market capitalization of around $ 207 billion.

The downside looks compelling as the prices have displayed a breakdown from the rising wedge pattern on the hourly chart.  The bearish reversal pattern was confirmed once the ascending trendline support at 11,341 was breached. Bears now target the next horizontal support near 11,100 levels before attacking Thursday’s low of 10,968.

Amid the negative bias, the hourly Relative Strength Index (RSI) appears to have bounced-off the oversold territory, which seems to offer some temporary respite to the BTC bulls. Any recovery attempt is likely to be shallow and could get sold-off into the horizontal 200-hourly simple moving average (HMA) now placed near 11,750. Should the bulls manage to regain the last, a test of the upper trend-line resistance at 11,976 will come into play. The pattern will fail on a break of this resistance.

BTC/USD 1-hour chart

Levels to Watch