October 29, 2020

Bitcoin Price Analysis: BTC attempts to smash through descending wedge

2 min read

Flash Alert: Thursday 12th September (end of day update)

Bitcoin snapped out of a sideway range, and unexpectedly turned bullish towards the end of day in Europe.

At the time of writing BTCUSDT was trading at $10,310-$10,339, down from an earlier high of $10,370. These level coincide with resistance levels that have held Bitcoin hostage within the descending wedge formation. An overview may be seen on the daily chart (above) as well as the 30-minute chart (below).

Source: Binance

After touching an earlier high, Bitcoin’s initial reaction was to pull back sharply although the price quickly bounced back. If Bitcoin can close above $10,400 then it could resume its bullish trajectory. If it doesn’t the market could perceive it as a failed breakout and result in a sharp pull back.

Based on the price action we are currently seeing, it is very likely we will see a sharp move either to the upside or to downside over the next 24 hours.

Unless the price of Bitcoin falls below key support levels, we continue to maintain a bullish stance. Our previous Flash Alerts continue to remain valid and may be viewed here.

A follow up post to this Flash Alert may be found here.

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