- Bitcoin breaks out of a falling wedge but runs out of steam before tackling $60,000.
- A death cross pattern on the 4-hour chart hints at increasing selling pressure in the near-term.
Bitcoin embraced support at $54,500 during the recent dive under $60,000. Improving short-term technical levels have led to a formidable recovery, with Bitcoin moving closer to $60,000. At the time of writing, BTC is doddering slightly under $59,000 amid the struggle to extend the bullish leg above $60,000.
The upswing toward $60,000 came as a result of the formation of a rising wedge. This pattern is bullish and forms amid an uptrend. As the asset ascends to higher levels, it hits a barrier, culminating in declines due to the exhausted bullish front. However, the correction does not stretch all the way down but allows bulls to secure higher support.
A minor consolidation takes place, but a bullish comeback leads to a breakout above the pattern. Meanwhile, the trajectory to $60,000 and the all-time high seems to have stalled. The Relative Strength Index (RSI) on the 4-hour chart reveals that Bitcoin hit overbought conditions.
BTC/USD 4-hour chart
If support at $58,000 fails to hold, the bellwether cryptocurrency may fall toward the recent support at $54,500. A death cross pattern on the same 4-hour chart may cement the bears’ influence in the market.
A golden cross pattern occurs when a long-term moving average crosses above a short-term moving average. For instance, the 200 Simple Moving Average (SMA) is currently crossing above the 50 SMA on the 4-hour chart. The pattern shows that Bitcoin is not out of the woods, and recovery to a new all-time high will not come easy.
Bitcoin intraday levels
Spot rate: $58,730
Relative change: -192
Percentage change: -0.3%
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