Bitcoin buyers appear to be eyeing the psychological $8,200 above today, but fears of a rising wedge reversal could put an abrupt end to the rising price. Let’s take a closer look.
On the 4-Hour BTC/USD chart, the price appears to be consolidating inside a bearish rising wedge pattern between two pinching trendlines. This pattern usually marks the start of a bearish reversal, as bullish momentum thins out ahead of strong resistance. In this case, the $8,200 level is the strong resistance and has played a critical role in preventing Bitcoin price 00 from retesting its recently printed new YTD-high at $9,096. The 0.236 Fibonacci level at $8,126.30 has also been a pivotal resistance against Bitcoin’s price, particularly during the last week of May when BTC was approaching maximum consolidation inside the ascending triangle. Bullish traders, however, have so far managed to secure this particular level during the last candle but buying volume on the MACD appears to be decreasing as they start to weaken.