Bitcoin on the 4hr timeframe shows a potential drop from a rising wedge formation.
Currently there are multiple moving averages supporting the move upwards, but eventually a drop from the falling wedge is likely as the $4,000-4,200 area has shown significant selling pressure. The most likely scenario right now is a pullback towards the $3,700 region to re-test as support, and from there we could either see some consolidation for another possible move upwards, or we'll see the bears take control and move the prices lower towards the $3,500 region, which has shown to be a major support level due to the incoming weekly 200MA as well as being the bottom of the possible ascending triangle pattern on the daily timeframe.
Short Term Statistics (Few Days):
- Price Moves to $3,700 (50% Chance)
- Price Moves to $3,500 (30% Chance)
- Price Moves Elsewhere (20% Chance)
Levels to watch:
- $3,700 (Target of the Rising Wedge)
- $3,700 (Area of 0.618 Fib Retracement)
- $3,500 (Bottom of Ascending Triangle)
Notes:
- Daily and Weekly timeframes show potentially bearish scenarios, which in turn could result in downwards price action on lower timeframes.
- Current strength of bulls do not appear strong enough to be able to break the upper resistances around $4,000-4,200
Currently there are multiple moving averages supporting the move upwards, but eventually a drop from the falling wedge is likely as the $4,000-4,200 area has shown significant selling pressure. The most likely scenario right now is a pullback towards the $3,700 region to re-test as support, and from there we could either see some consolidation for another possible move upwards, or we'll see the bears take control and move the prices lower towards the $3,500 region, which has shown to be a major support level due to the incoming weekly 200MA as well as being the bottom of the possible ascending triangle pattern on the daily timeframe.
Short Term Statistics (Few Days):
- Price Moves to $3,700 (50% Chance)
- Price Moves to $3,500 (30% Chance)
- Price Moves Elsewhere (20% Chance)
Levels to watch:
- $3,700 (Target of the Rising Wedge)
- $3,700 (Area of 0.618 Fib Retracement)
- $3,500 (Bottom of Ascending Triangle)
Notes:
- Daily and Weekly timeframes show potentially bearish scenarios, which in turn could result in downwards price action on lower timeframes.
- Current strength of bulls do not appear strong enough to be able to break the upper resistances around $4,000-4,200
