Descending triangle and a price-rejection:
In the 4-hourly chart, since 27th June the price of Bitcoin has formed a descending triangle. Recently price action of the leading cryptocurrency broke out the resistance of this descending triangle but this breakout was not supported by the sufficient buying volume and now the priceline has again re-entered the triangle and reached the support. But this sell-off is also not supported by the sufficient sell volume, Therefore, the price line may have another bounce by the support.
At the resistance of wedge:
On the daily timeframe, the price line is still moving in a big falling wedge pattern. For the last 10 days, the candlesticks are floating at the resistance of this pattern and making several attempts to break out this falling wedge pattern.
So far there is a very low volume. Therefore, Bitcoin’s price action is not having sufficient support to break out the resistance of this pattern. The volume profile of the complete price line moving within this falling wedge is still showing the point of control above the resistance. This is an indication that the price line may move up to the point of control. And in order to reach this POC level, the priceline will need to break out the resistance.
There is still a strong support zone from $31000 to $28800 and Bitcoin is not able to break down this support zone so far. Even the candlesticks are not being closed below $31K level.
Conclusion:
Since after the drop of 19th May. We have seen so many fake-outs. Sometimes priceline is breaking out the resistance levels but not starting the move towards the upside and most of the time it is also breaking down the different patterns but not hitting the targets of those patterns. The reason is low volume. Therefore, this time if the price action will again break out or breakdown any pattern then we will need to confirm that break out or break down with the volume, otherwise, we can have another fake-out.
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