![]() It shows traders have room to spark another rally above $10,000 – towards the Wedge’s original upside target. Meanwhile, Bitcoin’s weekly Relative Strength Index is also sitting above 52, a reading that has historically kept the cryptocurrency’s bullish bias intact. ![]() Supported by the 50-week moving average (the blue wave), traders could attempt to invalidate the most substantial price ceiling. That could mean traders are resetting their eyes on levels above $11,500, as long as they break out of bitcoin’s long-term resistance level, defined by a Descending Trendline (black). The cryptocurrency in May formed yet another Golden Cross, hinting that it would continue rallying for the remainder of this year. With the sell-off in rearview, and all the wounded assets recovering impressively, Bitcoin, too, is gaining back its pre-March 2020 sentiment. However, the markets negative reaction to the Feds announcement has made the case for a Rising Wedge pattern much stronger. Similar patterns had also appeared on the S&P 500 and Dow charts. This pattern looks like a megaphone pointing down and to the right. Price should touch each line 2 or 3 times to be considered a valid pattern. As you can see, the bottoms are decreasing, but the tops are decreasing at a faster pace. Up until Thursday afternoon, that pattern looked more like an Ascending Triangle pattern with a horizontal resistance line around 4350. A descending broadening wedge forms as price moves between the upper resistance and lower support trend lines multiple times as the trading range expands during the downtrend in price. ![]() BTCUSD Descending Trendline resistance | Source:, Coinbase As a descending wedge pattern, it develops on the chart when there are lower bottoms and even lower tops: Falling Wedge aka Descending Wedge. Its technical indicators have also alerted a bullish signal, which included the formation of a Golden Cross on daily charts in February. and Iran and uncertain aftermath of the trade deal between the U.S. Bitcoin was rising on the cusp of increasing geopolitical tensions between the U.S.
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