The follow-through to that bullish breakout has been extremely weak with prices unable to challenge the highs above $3,700 hit last Friday.
Bitcoin risks falling to $3,400 if the latest wedge breakout fails and prices find acceptance below $3,531.
So weak has been the follow through to the wedge breakout that prices have failed to challenge even the highs above $3,700 seen last Friday.
A convincing move above that resistance would put the focus back on the high volume falling wedge breakout and open the doors for a stronger corrective rally.
The bears may feel tempted to hit the market with fresh offers if the sideways action continues over the weekend, which could push price toward $3,400.
BTC created a bullish outside reversal candle on Feb. 8, meaning the price action seen during that three-day period engulfed the highs and lows of the preceding three days.
A move above $3,711 would confirm a short-term bearish-to-bullish trend change and open the doors to levels above $4,000.
On the 4-hour chart, BTC is currently trading above the upper edge of the falling wedge - a breakout indicating a resumption of the rally from lows below $3,400 seen on Feb. 8.
The positive move means BTC could confirm the bullish outside reversal with a move above $3,711 over the weekend.
The bears will likely capitalize and drive prices back toward $3,400 if the breakout fails and prices move below $3,531.
Bitcoin's Sideways Drift Has Shifted Price Recovery Target to $3.7K
Published on Feb 15, 2019
by Coindesk | Published on Coinage
Coinage
Mentioned in this article
Recent News
View All
Blockchain Bites: Bitcoin's Run, Uniswap's Hemorrhaging Value, Anchorage's Banking Bid
Bitcoin is nearing all-time highs in price and market cap last set three years ago.
Japan's megabanks to lead experiment with digital yen
We have, in order, Cheese Bank with a $3.3 million theft, Akropolis with its $2 million loss, Value DeFi with a whopping $6 million exploit and finally Origin Protocol's loss of $7 million.
Number of new Bitcoin addresses spikes amid growing FOMO
Japan's three largest banks, as part of a group of 30 private sector actors, are set to collaborate on an experiment with a digital yen.
Not just Wall Street: Quant trader explains why Bitcoin price is going up
Sam Trabucco, a quantitative trader at Alameda Research, believes four general factors are pushing up the price of Bitcoin.