The Bitcoin (BTC) is trading lower at the level of $4,308 driven on the news that Western exchanges reached a weighted average high of $4,980 per BTC. Shortly after bitcoin had hit a historical high, the price started to dive hard, taking its biggest loss in less than two months, losing over $300 in value. The technical analysis confirms that buyers got exhausted and that we may see a futher lower price.
Trading recommendations:
According to the 1H time frame, I found a broken rising wedge and the breakout ocoured with the gap, which is a sign that sellers sold agressively. A moving average oscilator showed a hidden bearish divergence, which is another sign of weakness. My advice is to watch for potential selling opportunities. The downward targets are set at the price of $4,166.00 and $3,598.00.
Support/Resistance
$4,622.00 – Gap resistance
$4,493.00 – Intraday resistance
$4,166.00 – Technical support
$4,925.00 – Major technical resistance
$3,958.00 – Major short - term support
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