Searching for a Higher Low
BTC: Price: $5,059 | MCAP: $89.2 billion | 24-Hr Volume: $17.1 billion
Short-term trend: Bearish
BTC/USD broke out from an ascending triangle yesterday, which are typically bullish continuation patterns, but quickly retreated inside the pattern and depreciated further despite the move being backed by an uptick in volume.
It now appears the pattern has morphed into a bearish rising wedge in which bitcoin’s price has broken down from. The measured breakdown is for roughly $4,900, derived from subtracting the base range of the wedge from the breakdown point.
Bulls now need to set a higher low and defend the $4,700-$4,900 area as support or else a test of the 200 day MA will be the next likely course of action.
Long-term trend: Still Bullish
The longer term outlook on bitcoin will be bullish as long as price is trading above the 200 day moving average, which is currently located at $4,556 as per Coinbase prices.
Even if price does find acceptance below the 200 day MA, the outlook would only be confirmed bearish if bitcoin’s price finds acceptance below the previous major resistance area near $4,200, of which price recently set a higher high above.