Bitcoin (BTC/USD) chart analysis

anteontem

### **Chart Overview**
The chart represents the price action of Bitcoin (BTC/USD) on the daily timeframe using Heikin Ashi candles. It includes key indicators like:
- Bollinger Bands
- Volume
- MACD (Moving Average Convergence Divergence)
- RSI (Relative Strength Index)

A "Rising Wedge" pattern has been highlighted, suggesting potential bearish implications. The target level from the wedge breakdown is marked.

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### **Key Chart Features and Pattern Observation**
1. **Rising Wedge Pattern**:
- The price action formed a rising wedge over several weeks, culminating in a bearish breakout below the wedge's support line.
- A rising wedge in an uptrend is typically a reversal pattern, signaling a potential price decline.

2. **Bearish Divergences**:
- Volume: Declining volume during the price rise inside the wedge, indicating weakening buying interest.
- MACD & RSI: Both show lower highs while price made higher highs, indicating bearish divergences.

3. **Support and Resistance**:
- Immediate resistance: Around $99,860.
- Immediate support: $93,643 (current price) and $58,863 (lower support level).

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### **Indicator Analysis**
1. **Volume**:
- Volume peaked near the wedge's upper boundary but steadily declined, confirming reduced momentum.
The recent spike in red volume bars coincides with the wedge breakdown, validating strong selling pressure.

2. **MACD**:
- A bearish crossover has occurred below the signal line.
- MACD histogram bars increase in red, indicating a shift toward bearish momentum.

3. **RSI**:
- RSI has fallen below the midline (50) and is heading toward the oversold region (<30).
- The bearish divergence supports the case for continued downward pressure.

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### **Key Levels or Price Levels**
- **Resistance Levels**:
- $99,860 (recent high)
- $108,388 (major psychological resistance)
- **Support Levels**:
- $93,643 (current support level, near breakdown point)
- $58,863 (major support level from historical price action)

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### **Overall Summary**
The chart exhibits clear bearish signals with the breakdown of the rising wedge pattern. The confluence of bearish divergences across indicators (Volume, MACD, RSI) further supports this view. Current price action suggests sellers are in control.

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### **Trading Strategy**
1. **Short Strategy**:
- **Entry**: Below $93,000 (confirmation of wedge breakdown).
- **Target 1**: $72,000 (near wedge target).
- **Target 2**: $58,000 (major historical support).
- **Stop Loss**: Above $100,000 (invalidates breakdown).

2. **Long Strategy** (if reversal is observed):
- **Entry**: Only if the price reclaims $100,000 with strong bullish momentum.
- **Target 1**: $108,000.
- **Stop Loss**: Below $93,000.

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### **Conclusion**
The overall bias for the chart is bearish in the short to medium term due to the rising wedge breakdown and bearish divergences. Traders should remain cautious and look for further confirmation before entering trades. A disciplined approach with proper stop-loss placement is critical in this volatile market.