$BTC
### Technical Analysis of Bitcoin (BTC) - 4 Hour Chart
Current Trend Overview:
Bitcoin has been exhibiting a rising wedge pattern on the 4-hour chart, indicating a potential reversal in the prevailing bullish trend. A rising wedge often suggests exhaustion in the buying pressure, leading to a breakout to the downside.
Pattern Analysis:
- Rising Wedge Formation: The rising wedge is characterized by converging trendlines that slope upward. The upper trendline connects higher highs, while the lower trendline connects higher lows. This formation typically forecasts a bearish reversal once a breakout occurs beneath the lower trendline.
- Breakout Confirmation: A recent breakdown below the lower trendline of the rising wedge confirms the bearish sentiment. Traders often look for increased volume on the breakout for confirmation, suggesting strong selling interest.
Price Targets:
With the breakout indicating a shift to bearish momentum, several potential target areas can be set based on prior support levels and Fibonacci retracement zones. Here are the target areas:
1. Target 1: 99,000 - This level acts as a psychological support, as it aligns with previous highs and may attract buyers attempting to step in.
2. Target 2: 97,500 - Slightly below Target 1, this level has been a notable area of price action in the past and may provide a bounce point.
3. Target 3: 95,000 - This area has potential as a strong support level, influenced by previous price consolidations and fib levels.
4. Target 4: 93,500 - As selling pressure continues, this target corresponds to previous swing lows, which can be pivotal for the price trend.
5. Target 5: 91,000 - If price action continues to decline, this further downside target can set the stage for deeper corrections.
Conclusion:
Given the current technical setup with the rising wedge pattern and confirmed breakout, Bitcoin appears poised for a bearish phase in the immediate future. Traders should remain vigilant and consider risk management strategies, keeping an eye on the outlined target areas.