BTC wedge narrowing up; new direction imminent
The price range continues to narrow with every passing day, but a big step on both sides can happen soon, and the graphs suggests the trend is about to be broken.
After a bullish reversal on Wednesday, the price of BTC index on coindesk (PBI) rose to $ 11,711 at 03:59 yesterday. It seems that bitcoin will exceed $12,000 and confirm the completion of the forecast trends.
However, prices fell to $10,889 at 5:59 pm UTC. Bulls reversal made another attempt to regain their position, but faced rejection at $11,608 in Asian hours today.
The failure to cap the bullish reversal on Wednesday fell to a three-day low of $10,321 today. At the time of this writing, the BTC changes to about $10,600. The value of cryptocurrencies has fallen 4.11 percent in the past 24 hours, says the data source OnChainFX.
In addition, the drop from the previous day's high of $11,111 to less than $10,500 neutralized immediate expectations. A break or relegation would probably set the direction for the next movement.
Currently, the converging trend lines show a continuation pattern in this case the narrowing prices could lead to a massive sell off, such a move would open doors for a slide to $5,232, the downside target is far-fetched but could be a scenario. However, BTC could revisit $9,000 following confirmation of a downside break of the symmetrical triangle pattern. The relative strength index (RSI) is sloping downwards, suggesting scope for a drop in prices. The key MAs - 50, 100, 200 - are sloping downwards in favor of the bears. So, the downside break looks likely as per the 4-hour chart.
That said, the dips below the $10,000 mark are to be viewed with caution says the daily chart as the bears haven't been able to keep BTC under $10,000 and teh lowest close being $10,391.