Bitcoin Chart Analysis
Bitcoin has made it back into our potential falling wedge (tightening falling triangle) after the bearish breakout on Tuesday. Currently, we are at around $32,150, up over 10% from Tuesday.
On the daily chart, we can see a clear buy reaction and the steep rise that Bitcoin put in place yesterday. This probably has to do with the B-Word Conference with Cathie Wood (Ark), Jack Dorsey (Square) and Elon Musk (Tesla, Space-X). Even before the conference, many had hoped for this day that positive news could influence the share price, which ultimately happened.
The trading volume before the conference was very low and yet the prices rose. During the conference you could see how the trading volume increased significantly. Most of all, people paid attention to Elon Musk’s statements. In the end, we were able to close the day on a positive note and there were no further price reactions.
If we look a little closer at the 4H chart, we can clearly see the rise from yesterday. There is now a large support zone below due to the strong daily close. Also the volume, increased a bit compared to the last day.
One possibility for the current day would be that we first return to our support zone to bring in new liquidity to help us get above the resistance above us. Should this happen, we would have an Inverse Head&Shoulders pattern (inverted shoulder-head-shoulders formation/bullish) which could support us on the way up.