Bitcoin price prediction: Possible descending wedge breakout

Blokt
- Jan 24th 2:29 pm

Long-term outlook:

Bitcoin weekly chart

A look at the Weekly chart for Bitcoin shows that price is currently trading at $3640, finding steady support at the 200-period moving average.

The RSI was below 30 for a short while, indicating oversold conditions.

Furthermore, the MACD has started to turn and is close to making a bullish cross.

However, the price is facing resistance from the 7, 21, 50 period MAs and the Ichimoku Cloud.

Medium-term outlook:

Bitcoin 3-day chart

A look at the 3-day chart shows that price is facing very close resistance from the 7-period MA and is trading below all the moving averages and the Ichimoku cloud.

However, there is some bullish divergence developing in the RSI and the MACD is moving upward.

Bitcoin daily chart

A look at the Daily chart gives similar information.

The MACD is close to making a bullish cross and price is below the moving averages. It is worth noting that the projected cloud is positive.

Short-term outlook and price prediction:

Bitcoin 6-hour chart

A look at the 6-hour chart gives us a structure in which price might be trading in.

Firstly, it is worth noting that there is significant bullish divergence developing in the RSI.

Secondly, the price is following a descending support line (solid green) and there is the possibility that it is forming a descending wedge.

The resistance line (dashed red) has not been validated yet since it has only been touched twice, but it is worth keeping an eye on if price breaks out from it with significant volume.

Price prediction: I believe that in the short-term price will break out of the resistance and head for the top of the wedge ($4000)

Conclusions:

  • Price has found support at the 200-week moving average.
  • There is some bullish divergence developing in medium-term timeframes.
  • Price is trading in a possible descending wedge.

Bitcoin price prediction: Possible descending wedge breakout was originally found on Cryptocurrency News | Blockchain News | Bitcoin News | blokt.com.

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