Bitcoin Price Analysis: The BTC/USD Falling Wedge Scenario, Why $10k and $10.5k Are The Bigger Picture?

Published June 19, 2020 | Updated June 19, 2020

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Bitcoin Price Analysis: The BTC/USD Falling Wedge Scenario, Why $10k and $10.5k Are The Bigger Picture?

  • Bitcoin bulls stop declines above $9,300 after $9,400 failed to hold; bulls still yearn for $10,000.
  • The falling wedge pattern becomes Bitcoin bulls’ most anticipated boost above $10,000.

Over the last couple of weeks, Bitcoin has been struggling to break the psychological hurdle at $10,000. Glancing higher, a short-lived rally in the first week of June saw its momentum fizzle out marginally above $10,400, leaving $10,500 untested and definitely unconquered. Meanwhile, in this same month, BTC/USD has tumbled, testing support at $9,300. The recovery that ensued has not been strong enough to catapult Bitcoin past $9,600.

The BTC/USD Daily Chart Analysis

Bitcoin price is trading at $9,321 in the wake of a 0.57% loss. Support has since been established at $9,300 after Thursday attempt to stick above $9,400 failed to yield as expected. Generally, the prevailing trend for the leading cryptocurrency is bearish. The good thing is that volatility is low, therefore, rapid price actions remain limited.

A closer look at the chart shows that Bitcoin has a bearish inclination mainly supported by the Relative Strength Index (RSI) and the Moving Average Convergence Divergence (MACD). The RSI has a slightly negative gradient, which means that buying pressure is not absent; probably the reason why Bitcoin has stayed above $9,300 despite the loss from levels above $9,400. The MACD also puts emphasis on the existent of bullish pressure but of course, only to some extent. The MACD also features a bearish divergence that highlights a growing bearish grip.

BTC/USD daily chart

BTC/USD price chart by Tradingview

The Falling Wedge Scenario

Since yesterday, we have been looking keenly at this falling wedge pattern; currently the only ‘saving grace’ for the bulls’ mission of breaking $10,000 and $10,500. Bitcoin is dealing with the high congestion of sellers at the descending trendline. The breakout above this line is the only factor I anticipate to catapult Bitcoin past $10,000 towards $10,500.

Bitcoin Key Intraday Levels

Spot rate: $9,321

Relative change: -62

Percentage change: -0.57%

Trend: bearish

Volatility: Low

Disclaimer
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.
About Author
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

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John Isige 1001 Articles
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
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