Bitcoin (BTC) Price Analysis: Waiting for a Wedge Breakout
Bitcoin has been forming higher lows and higher highs, trending higher inside a rising wedge pattern. Price looks ready for another test of support and might bounce back to the top.
The 100 SMA is above the longer-term 200 SMA to confirm that the path of least resistance is to the upside. In other words, the uptrend is more likely to resume than to reverse or support is more likely to hold than to break. The gap between the moving averages is widening to reflect stronger bullish momentum.
However, RSI is on the move down to signal that sellers have the upper hand. Stochastic also looks ready to turn lower to confirm that bears could return.
In that case, a break below the wedge support around $7700 could lead to a drop of the same height as the chart formation, which spans $7000 to $7800. Similarly, a break past the resistance could lead to a rally of the same size.
Late last week it was reported that Bahrain and Uganda could see more bitcoin activity. Binance is reportedly planning on opening an office in Uganda, with CEO Changpeng Zhao citing:
“I was very impressed by the enthusiasm of Africans to introduce cryptocurrency and blockchain technology. It was surprising to see that cryptocurrencies enjoy not only an increased interest from the people, but also the active support of many representatives of African banks and government officials”
And over the weekend, officials in several European countries expressed support for blockchain. In Spain, lawmakers issued a unanimous call for adopting regulations that favor the implementation of crypto and blockchain technologies.
In Slovenia, the government is looking at an action plan to underpin the implementation of blockchain technology in the country and create a regulatory framework for cryptocurrencies. Estonia, meanwhile, backed down on its plan to create a national cryptocurrency to rival bitcoin.