Bitcoin [BTC] Price Analysis: Is A Breakout From The Descending Wedge Imminent?

Published February 6, 2019 | Updated February 6, 2019

bitcoin price Analysis
Bitcoin Price Analysis

Bitcoin [BTC] Price Analysis: Is A Breakout From The Descending Wedge Imminent?

Key Highlights:

  • The current daily candle is a bearish engulfing candle.
  • Daily indicators are bearish
  • Price has made three unsuccessful attempts to break above the 7-day moving average.

The price is trading in a short-term descending wedge and got rejected by the resistance line for the 4th time, sparking a sharp drop on very significant volume from $3520 to $3440 in less than two hours. All the data and charts are taken from the BTC/USD pair on BITFINEX.

Bitcoin Price Analysis – BTC/USD Daily Chart

Bitcoin Price Analysis
Daily Chart Source Tradingview, bitfinex

A look at the Daily chart shows that the price of BTC has retraced all the way to the 0.786 fib line of the entire upward move ($3273 to 4175). A break below this area would put in action the minor fib support area near $3361 and then the most significant support area at $3240-$3320 which would effectively make a double bottom pattern. Price has made three unsuccessful attempts at breaking through the 7-period moving average which has made a bearish cross. Furthermore, the price is currently trading below all the moving averages and the Ichimoku Cloud, portraying a bearish scenario. The retracement started after the double top on January 7th and is currently on day 30.

As for the indicators, after making a bullish cross 5 days earlier, the MACD has lost all of its power and is currently on the process of making a bearish cross. There is no significant divergence of any kind in the RSI.

Bitcoin Price Analysis
2 hrs Chart Source Tradingview, bitfinex

A look at the 2-hour chart gives us a structure in which price is trading in. Price is trading in a descending wedge and has been doing so for the past 18 days and 2 hours. It got rejected four times by the resistance line and the 2-hour bearish candle which started on 01:00 closed with very significant volume (yellow arrow).

Furthermore, the price made multiple unsuccessful attempts to break past the resistance offered by the 200-period moving average which coincided with the wedge resistance and has now fallen considerably below it. Also, the 7 and 21 period MAs have made a bearish cross and are both dropping sharply. Similarly to the daily analysis, the price is trading below all the moving averages, a bearish sign. The wedge is projected to end near February 16th.


  • The closest support area is found at $3240-$3320.
  • The closest resistance area is found at $3610-$3670.
  • Price is trading in a descending wedge.
The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
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Valdrin Tahiri 33 Articles
Valdrin is an eager trader, cryptocurrency enthusiast, and freelance writer. He specializes in technical analysis, indicators and charting guides. Reach out to him at [email protected]

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