Bitcoin remains neutral and does not show a clear trend over the medium term. Indeed, its course is still evolving in the channel in the form of an ascending bevel over 4 hours. However, sellers remain in control if observed from a weekly scale. And then the price of an asset usually breaks an ascending wedge from below. Alongside this, other indicators like RSI and Ichimoku cloud are showing bearish signals on bitcoin. We could therefore expect a next bearish wave for bitcoin, after this range.
Bitcoin (BTC): neutral in a rising wedge
The crypto leader is still moving in its rising 4-hour wedge. Despite a performance of over 28% since July, Bitcoin remains neutral. Generally, a rising wedge precedes a bearish impulse. And then the variation of the price narrows more and more, following the compression of the bevel. This can be explained by an equality between the strength of sellers and buyers. The bulls start to exit the market by liquidating their long positions around $25,000. This gives way to sellers, who will cause a breakout of the rising wedge downwards. Therefore, winter is likely to continue for the king of cryptos. However, as long as the price moves within the wedge, bitcoin (BTC) remains neutral.
Bitcoin (BTC): the indicators remain bearish?
Next to the rising wedge which is a bearish pattern, indicators are also giving bearish signals for bitcoin. This is the case of the RSI and the Ichimoku cloud.
On the Ichimoku indicator, the cloud twist is about to occur. This crossing between the SSB and the SSA (twist) also accompanies the compression of the price inside the wedge. This twist then reinforces the probability that bitcoin (BTC), which is currently neutral, will enter a bear market. In addition to this, we also see a bearish divergence on the RSI.
In sum, bitcoin is currently in range (neutral), but will likely continue to decline. The rising wedge, combined with the RSI and the Ichimoku cloud, confirms that the sellers remain in control on bitcoin. That said, it’s all about probability in crypto trading. It is entirely possible that this crypto will break the bevel up. Thus marking the beginning of a new bull run.
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