Bitcoin (BTC) Trades Under the Big Falling Wedge

By January 5, 2020Bitcoin Business
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Volatility is incoming as daily prices may see a rise in value to test the trendline at $7600. Weekly BTC prices are still trading inside the declining channel and can go down further to complete this pattern.

Bitcoin Price Prediction

Weekly prices are trading at a 61.8% Fib level and it is currently acting as a support. BTC prices are approaching the trendline and death cross of 9 days SMA (Simple Moving Average) with 49 days SMA can be seen in the below-given chart; prices might be pushed down towards the $6000 support or 78.6% Fib level.

Weekly RSI is at 43.04 and closely following the trend line, as shown in the chart below. Previous support of 45.04 couldn’t hold and it can go down further towards 30.

Daily BTC prices are supported by the 21 days SMA (Simple Moving Average). 49 days SMA denoted by the green line, which is acting as a resistance at $7459 and the trend line is acting as a resistance at $7600.

RSI (Relative Strength Index) is at 46.88, which is neutral and Stoch RSI (Stochastic Relative Strength Index) is at the oversold region, clearly indicating that the prices will go down.

Laying Ichimoku Kinko Hyo system over the above mentioned 1D chart, the following things can be observed:

  • Prices are trading below the Kumo, bearish.
  • Prices got rejected by the Tenkan Sen (blue line) and currently supported by the Kijun Sen (red line). Prices may try to test the resistance area again.
  • Chikou Span is below the price candles, bearish.
  • Senkou Span A is coinciding with the trendline, and both are acting as resistance from $7215 to $7636.

Conclusion:

  • BTC prices may bounce a bit to test the trendline at $7600 as the current prices are supported by the 61.8% Fib level at $7235.
  • BTC prices may see a final push down towards the $6000 support line or 78.6% Fib level, and with this movement, the falling wedge will be completed, and BTC will have a breakout.

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