BTC Technical Analysis: Will This Wedge Breakout Reach $22K?
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The BTC prices maintain a declining trend, leading to a bearish wedge pattern in the daily chart. Currently, the bull cycle within the bearish pattern increases the possibility of a bullish breakout with the support of the technical indicators. So, should you consider buying Bitcoin at the $20K mark?
Key Points:
Source - Tradingview
BTC Technical Analysis
The BTC prices dropped by 20% within the last two weeks leading to a bearish wedge pattern in the daily chart and crossing the $20,000 mark. However, the buyers regained train control at the support trendline and propelled the market price to above the $20,000 mark.
The bullish reversal within the bearish pattern gains momentum, which increases the possibility of a resistance trendline breakout.
The daily candle currently displays a bullish growth of 2.74%, which reclaims the psychological mark of $20,000. The sideline traders can expect the breakout rally to reach the $21,875 mark, which acts as the overhead resistance.
Conversely, a downtrend continuation might retest the crucial bottom support level of $18,850.
Technical Indicators
The RSI slope mimics the price action and shows a bullish reversal from the oversold boundary exceeding the 14 days average line. Hence, a bullish turnaround in the nearly oversold zone reflects increases in the underlying bullishness.
The MACD indicator displays the fast and slow lines on the verge of giving a bullish crossover. Hence, the technical indicators maintain a bullish outlook for the upcoming trend in BTC prices.
Resistance Levels: $21,875 and $25K
Support Levels: $20K and $18,850