Bitcoin Price Analysis: The hourly chart has moved into a descending chart formation
- Bitcoin trades just over 2% higher on the session over the bank holiday weekend.
- The price has moved into a descending wedge formation on the hourly chart.
BTC/USD 1-hour chart
Bitcoin has been trading in a downward pattern ever since the market failed to break the 10K mark on May 7th. Now there is a clear pattern of lower lows and lower highs since the red support zone at 9289.57 was taken out. The main wave low still stands at 9120 and this could be an important resistance zone in the future.
The main highlight on the chart is the descending wedge pattern. The support was used very well and on Monday the market has pushed back up. The top of the pattern may now be a resistance zone but above this, if the price does push through it we could have an important signal.
The price us under both the 200 and 55 moving averages which is also a bearish sign. Closest to the price is the 55 exponential moving average and it could a resistance zone. The Relative Strength Index indicator has just moved above the 50 mid-line which is a bullish sign but often on the intraday timeframes the market is pretty volatile.
-637260266265703414.png)
Additional levels
Author
Rajan Dhall, MSTA
FX Daily
Rajan Dhall is an experienced market analyst, who has been trading professionally since 2007 managing various funds producing exceptional returns.
