Bitcoin’s Ascending Wedge: Will it Soar or Face a Setback?

Key Points

• Bitcoin (BTC) is trading within a rising wedge, with $86,400 as a crucial resistance level.
• A breakout above this level could push BTC towards $90,000, while a rejection could lead to a drop below $80,000.

Bitcoin, also known as BTC , is currently consolidating within a rising wedge pattern. The critical resistance zone is at $86,400. The price has recently surpassed and retested the $83,800 resistance level, which now serves as a key pivot point for BTC’s next major move.

Bitcoin’s Position and Potential Movements

Traders are closely observing the $86,400 region as it could dictate Bitcoin’s short-term trajectory. The rising wedge pattern, visible on lower timeframes, indicates Bitcoin trading within an ascending structure. However, this setup often precedes bearish breakouts.

The current BTC price is $84,263, still within the wedge but nearing the upper boundary. Volume analysis shows declining activity, suggesting that buyers might be losing momentum as Bitcoin approaches resistance. The Relative Strength Index (RSI) is in neutral territory, indicating no strong overbought or oversold signal yet.

Key Resistance and Support Zones

The immediate resistance is at $86,400. A successful break above this level could see Bitcoin extend towards $90,000 and potentially $95,000 if momentum sustains. The major support is at $83,800, which was recently tested as support and is crucial for maintaining Bitcoin’s bullish structure.

If this level fails, BTC could revisit $81,700 and possibly dip below $80,000. Fibonacci levels indicate that the 0.618 retracement level aligns near $86,900, further strengthening the resistance zone. On the downside, the 0.786 level at $78,300 could serve as strong support if BTC fails to hold above the wedge.

A clean breakout above $86,400 would invalidate bearish concerns, leading to a bullish run towards $90,000 or higher. However, if BTC fails to maintain the wedge structure, it could result in a sharp drop with initial downside targets near $81,700 and $78,300.

Market participants should monitor volume and RSI behavior closely to assess breakout strength. Currently, Bitcoin is at a pivotal point, with traders awaiting confirmation on whether the resistance will hold or break. The next few days will be critical in determining BTC’s next major price movement.