BTC analysis – closing wedge closed. Can we expect a corrective leg?
2 min readBTC continues its growing wedge, which is likely to close soon. This growing wedge is characterized by ever-decreasing bull movements. Volumes have also not yet risen and the latest growth has been clear evidence trend slowdown. In addition, wedge closure is likely to occur directly on resistance zone.
BTC reached the last local maximum on the surface $ 48,190 and is currently in slight decline. However, rising and falling legions are shrinking and we are achieving reduction of volatility. It is therefore necessary to consider ending the wedge. According to theory, the wedge should be closed with bear lego, but this was not always the case with BTC. If the wedge really closes with a bear lego, we will monitor the main support at a level of approx $ 41,000. This support level represents the upper limit of the previous two-month accumulation structure.
BTC growth is slowing
First, however, we will monitor whether the price can not be reflected from the level of wedge support to approx $ 45,000 and above. However, the reflection must be accompanied by a sharp increase in volume. Otherwise, the price is unlikely to exceed the resistance at $ 49,000. It is the area from $ 46,500 to $ 49,000 that is the resistance zone.
Bull target in the event of a breakdown of wedge resistance, it is on the surface $ 50,500 however, in this case, the market would start to overheat and, in particular, volumes would have to increase. In addition to volumes, we also monitor RSI, which indicates a negative divergence at the limit of overbought of about 70 points.
