While Bitcoin is still very bullish on all higher time frames, we are beginning to see weakness come into the market on the lower time frames.
On the 1-hour time frame, Bitcoin is currently forming a rising wedge pattern. This pattern is a very bearish signal and points to a likely dump in the price of Bitcoin in the coming days.
However, for this bearish price scenario to be confirmed, Bitcoin needs to break through a very key support region. In this Bitcoin analysis, we will be talking about this key support and how best to prepare for this sell-off if it occurs.
Important Levels To Watch
The most important levels to watch are the trendlines that make up the rising wedge pattern the price is currently trading within.
A break below the base/support trendline could signal the end of the current bullish move and the beginning of the sell-off for Bitcoin.
This base trendline is very important because Bitcoin has tested and bounced off this support on numerous occasions in the past. If Bitcoin finds support and bounces off this support again in the coming future, then there is a very high likely hood Bitcoin will continue heading higher.
The top trendline of the rising wedge pattern is also a very key level to watch out for in the coming days. The trendline resistance has held the Bitcoin price back on numerous occasions in the past, and will likely come into play again in the coming days.
If the Bitcoin price breaks through this resistance, then we can expect to see the price continue trading higher in the coming days.
However, if the trendline resistance holds, then we can expect to see the Bitcoin price sell-off from that region.
But until one of these two scenarios occurs, it is best to believe that the bearish rising wedge pattern is yet to be completed and the Bitcoin market is still undecided on the direction it would like to push the price to for the short term.
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