BTC’s Price Is at Risk of Breaking Below a Bearish Chart Pattern
- The price of Bitcoin (BTC) has risen 0.61% over the last 24 hours.
- A bearish chart pattern on BTC’s 4-hour chart suggests that BTC’s price will drop in the coming hours.
The Twitter user, Material Indicators (@MI_Algos), tweeted this morning that Fire Charts show that crypto weekend whales “seem interested in trying to exploit the upside liquidity in the Bitcoin order book to sell higher.” In the tweet, the Twitter user also stated that he is expecting volatility to continue through Tuesday’s CPI Report.
The crypto market leader’s price has risen 0.61% over the last 24 hours according to CoinMarketCap. At press time, the price of BTC stands at $21,817.43.
There is a bearish descending triangle chart pattern present on BTC’s 4-hour chart, with its base at the $21,500 support level. This bearish chart pattern suggests that BTC’s price may drop below the support level. Should this happen, BTC’s price will likely drop to $20,800.
BTC’s price is currently trading above the 9 EMA line on BTC’s 4-hour chart and is looking to cross above the 20 EMA line in today’s trading session. However, the 20 EMA line on BTC’s 4-hour chart is at the same level at the upper bound of the aforementioned bearish chart pattern. As such, the price of BTC may retrace once it hits the 20 EMA line.
On the other hand, if BTC’s price closes today’s trading session above the upper bound of the bearish chart pattern, then the bearish thesis will be invalidated and BTC’s price will make a move towards $22,500.
There is some short-term bullish momentum present on BTC’s charts as the RSI line on BTC’s 4-hour chart has broken above the RSI SMA line. In addition to this, the RSI line is sloped positively, which indicates that BTC’s price may continue to rise over the coming hours.
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