- Bitcoin hits the pause button before testing $9,000; correction is under towards $8,400.
Bitcoin upward correction is likely to hit more hurdles especially with the formation of the rising wedge pattern.
Prior to the massive correction, Bitcoin’s upside was capped at $8,200. The resistance and selling activity at $8,400 was an uphill task as well. However, once broken, hell broke loose on the bears as the price soared to new 2020 highs.
It is unfortunate that $9,000 was not tested during this rise. Besides, the ongoing correction appears to be targeting $8,000. Bitcoin is teetering at $8,625, at the time of writing. The Relative Strength Index (RSI) downward slope hints that losses have only begun and could extend to the nearby support at $8,400.
The negative technical picture is being emphasized by then Moving Average Convergence Divergence (MACD), currently featuring a minor bearish cross. Similarly, the upward movement has stalled and a downward slopping correction is taking over.
Both the long term and short term technical pictures for Bitcoin seem bearish. The formation of a rising wedge pattern signals a future reversal that could test $8,000 in a bid to push Bitcoin into the $7,000 range.
Bitcoin Key Levels
BitMEX index price: $8,621
24-hour volume: $3.3 billion
Open interest: $852 million
Percentage change: -2.23%
Relative change: -196
RSI: Downward slopping hints bearish outlook in the near term.