Bitcoin Trades Inside Falling Wedge - Will It Break Upward?

• BTC saw a massive 7% price hike yesterday as the coin bounces back above the $30K level.
  
  
• The cryptocurrency penetrated the descending triangle it was trading in but found support at the lower angle of a wedge.
  
  
• Bitcoin still needs to break the wedge and the 20-day MA to start to look for a recovery moving forward.
  
  

BTC saw a huge 7% recovery candle yesterday. The cryptocurrency slipped beneath the lower boundary of a descending triangle pattern on Monday and continued lower on Tuesday to reach as low as $29,300.

It found support at the lower angle of a falling wedge pattern which allowed it to rebound by 7% yesterday to climb back above the $30K level and reach as high as $32,825. It is now facing resistance at the upper angle of the wedge and the 20-day MA. A breakout of these levels could allow BTC to start a trend higher toward the July highs again.

Bitcoin Price Analysis

What has been going on?

Taking a look at the daily chart above, we can see BTC breaking beneath the descending triangle that it was trading within at the start of the week as it sank beneath $30K. It even produced a daily candle closing price beneath $30K, making it the lowest candle close since January.

Fortunately, we can also see that BTC found support at the lower boundary of a descending wedge formation. It rebounded from this support yesterday and surged higher into the resistance at the upper edge of the wedge. The 20-day MA level further bolstered this resistance.

A breakout of this wedge formation would be pretty significant, and it should allow BTC to surge to the July highs at the very least. Luckily, descending wedges are typically bullish and resolve themselves toward the upside on the majority of occasions.


Bitcoin price short-term prediction: NEUTRAL

Bitcoin still remains neutral in the short term and would have to break above resistance at $42,000 to start to turn bullish again. On the other side, a closing candle beneath the lower angle of the wedge would turn the market bearish again.

Looking ahead, the first support lies at $31,500. This is followed by $31,000. Beneath $31K, added support lies at $30,800, $30,680, $30,400, and $30,000. Additional support is then found at $29,710, $29,500, and $29,000 (lower angle of the wedge).

Where Is The Resistance Toward The Upside?

On the other side, the first resistance lies at around $32,000. This si followed by $32,400 (upside of the wedge). Above the wedge, resistance lies at $32,630 (bearish .5 Fib), $33,200, $33,415 (beairsh .618 Fib), $34,000, and $34,500 (bearish .786 Fib & 50-day MA).