This time around, we have a 4-hour BTC/USD chart Bitcoin technical analysis (TA) with a falling wedge pattern. There are a lot of goodies today in the form of interesting formations and Fibonacci readings. Moreover, we will reveal the approximation of how much time we have until the next big price move.
Bitcoin currently fluctuates around $8,000, which may not be the case for much longer. Therefore, without any further ado, let’s dive straight into it.
The falling wedge
Our 4-hour chart clearly shows the falling wedge pattern (yellow). Usually, this means that the trend reversal is drawing nearer.
It is the truth that today’s high of $8,070 looked like a possible breakout. However, today’s breakout rejection revealed that we’ll have to wait a bit more for the price to show a sign of recuperation.
It is not just about the falling wedge, though. There are all other kinds of interesting aspects of this chart. Just keep reading…
Supports and resistances
Like it is often the case, inside Bitcoin’s falling wedge pattern, on the way down, supports are becoming resistances. First time at $8,475 and at $8,127 afterward. Consider this fact as important while taking long and short positions while trading inside the wedge.
It is also interesting to see how both times, after hitting the blue resistance line, BTC failed ro reach it again. That lower high resulted in steep red candles not long after, which tends to be typical for this kind of price movement.
Still, this isn’t everything you need to know about our layered Bitcoin technical analysis 4-hour chart.
Fibonacci technical analysis
When we talked about those supports and resistances, it is important for your further trading to realize how those are, in fact, really close to Fibonacci retracement levels. The first major support inside the wedge is exactly at 23.6% from the latest peak. The second is visible at 50%, while the third is at 61.8%.
At the moment, the price is approaching the 100% level at roughly $7,780, since 78.6% failed to hold the support. That could be significant as a place for the next breakout possibility.
The USD/BTC 4-hour chart above shows another interesting Fibonacci reading. As it is visible, since the first low and high, the Fibonacci time zones indicator reveals that there is a pattern in when Bitcoin’s sharp movements transpire.
Nevertheless, it is highly unlikely that BTC is going to remain inside the falling wedge until zone 5 so, traders should expect a big move to happen before.
Volume in Bitcoin technical analysis chart
Trading volume is always important when searching for the right trading position as it is usually the lowest just before some bigger price moves. Therefore, you should expect the volume to decline towards the lower areas of the wedge as more and more traders restrain themselves from taking positions and wait for the confirmation.
Bitcoin technical analysis looks good (for smart traders)
As the title states, on the way down, Bitcoin technical analysis in a USD pair doesn’t look that bad at all. Currently, we can say that the pattern is quite predictable as it follows the wedge. Therefore, for those already in short positions on, for example, derivatives trading platforms, you may have some more time to enjoy profits. On the other hand, those who wait should do so until the breakout confirmation.
We really do hope that there are no such traders who hold long. If there are, we hope that you understood the meaning of all these written lines.
Bitcoin is still far from this year’s lows, and it is still too early to say how the fourth fiscal quarter of 2019 is going to end. What we do know is that by making smart decisions, traders can profit from bearish market sentiment as well as from the bullish.
Therefore, stay tuned into CoinSyn.com for more trading ideas.
You should look elsewhere for investment advice since this is not it even if it looks like it. Cryptocurrencies are known to be extremely volatile and risky speculations. Always do your own research. Maybe even consult an investment professional prior to investing your money.