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Bitcoin and the aggregated crypto markets have been facing a period of consolidation after posting a decent sized rally earlier this week. Although this rally has stalled in recent times, it is important to note that BTC’s main level of resistance still exists at $10,800.
One analyst, however, believes that an inability to validate a bearish rising wedge that BTC is currently trading within could spell trouble for the cryptocurrency in the near-term.
Bitcoin Inches Lower After Facing Rejection
At the time of writing, Bitcoin is trading down marginally at its current price of $10,320, which marks a slight retrace from its daily highs of $10,450.
Ever since BTC bounced from its support level at $10,000, the cryptocurrency has been facing a bout of consolidation after its upwards momentum stalled, which may mean that its bulls do not have enough strength at the moment to push the cryptocurrency higher.
The Cryptomist, a popular cryptocurrency analyst on Twitter, explained in a recent tweet that she believes Bitcoin is currently caught within a rising wedge, which could spell trouble for its near-term price action.
“$BTC: Short and simple analysis… Rising wedge. One final touch approx 10.4k – Looking at target approx 10k,” she concisely noted while pointing to the below chart.
Short and simple analysis …
Just like I am sure many of you are 😉– Rising wedge
– One final touch approx 10.4k
– Looking at target approx 10k— The Cryptomist (@Thecryptomist) September 13, 2019
If this pattern does ultimately have bullish implications for the cryptocurrency, $10,000 will be a key support level that analysts closely watch, as any break below this level could spell trouble for its mid-term price action.
BTC May Still Target $10,800
Although BTC found some resistance in the mid-$10,400 range, its nearest major resistance level currently exists at roughly $10,800, and a break above this price level could spark a massive upwards movement.
Chonis Trading, another popular analyst, spoke about the $10,800 resistance level in a recent tweet, explaining that a decisive break above this price level would be notable and could set a positive tone for the rest of 2019.
“$BTC – yesterday’s Bullish move closed right under the MA50, breaking thought puts the next notable #bitcoin resistance around $10,800+ area…if it can break that is,” he said.
$BTC – yesterday’s Bullish move closed right under the MA50, breaking thought puts the next notable #bitcoin resistance around $10,800+ area…if it can break that is… pic.twitter.com/7YhpoPSYCK
— BIG Chonis (@BigChonis) September 13, 2019
As the week continues on and Bitcoin continues to consolidate around $10,300, it is likely that its trend for the rest of the year will soon grow increasingly clear.
Featured image from Shutterstock.
