FX.co ★ Bitcoin and the wedge pattern

Bitcoin is challenging the upper wedge pattern boundary. This is an important test for bulls. Recapturing the $8,200-$8,500 resistance area would be a big step for another move towards $10,000 and higher. A rejection at current levels could price BTCUSD back towards $6,000 and possibly lower.

Red lines- wedge pattern

BTCUSD is bouncing strongly around the major Fibonacci retracement level of 61.8%. Will the wedge boundary resistance break? Short-term trend is bullish as price has reversed at $6,500 and is making higher highs and higher lows since December 17th. Support is at $7,200-$7,000 area and if we see price break below this level, we should confirm the rejection and the chances for a move below $6,000 will be high.