- Bitcoin approaches the end of the correction ahead of the festive season rally.
- A falling wedge pattern is in the offing; its impact could be miraculous for Bitcoin.
Bitcoin has spent the last three weeks retracing from October’s high around $10,542. The retreat failed to find a balance above $10,000. There was a struggle to keep it above $9,000 but Bitcoin bulls were overwhelmed, in turn, opening a Pandora box. The price dived to lows below $10,500, besides, the weekend session saw Bitcoin test the support at $10,350.
A minor correction from the weekend low saw the price step above $10,500 before adjusting to the current value. Adding to the odds of Bitcoin’s recovery is the 50 Moving Average currently at $8,645. The 100 MA on the 4-hour chart is also standing in the way of upside correction at $7,705.
BTC/USD 4-hour chart
From another technical picture, BTC/USD is nearing another life shuttering breakout as the festive season approaches. The impending breakout is likely to be driven by a perfectly forming falling wedge pattern. The price is trading almost at the apex of the which shows that Bitcoin is completing the bottom hunting mission.
In this case, Bitcoin only requires a catalytic boost above the wedge resistance and the end of the year magic will take over. In my opinion and based on the current technical picture, Bitcoin will most definitely close 2019 trading above the coveted $10,000.
Another determinant for the potential rally is the ability for Bitcoin to defend Andrews Pitchfork lower channel support. This support is will function as a stepping stone into the bullish every crypto investor is yearning for.
Meanwhile, the remaining sessions on Monday are likely to be characterized by dominating selling pressure. The RSI, for instance, is trending towards the oversold signaling a tightening bearish grip.
Bitcoin Key Technical Levels
RSI: Bearish signals
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John is a talented writer with over two years of experience actively contributing to the cryptocurrency industry by providing credible, interesting and easy to read the content. His main focus is on cryptocurrency price analysis and industry news coverage. Lets follow him on Twitter at @jjisige