Bitcoin has been carefully trying to climb higher, especially with global uncertainty due to the<a href="https://www.cryptoknowmics.com/crypto/coronavirus-outbreak-stagnates-bitcoins-mining-difficulty/"> Coronavirus epidemic</a>. After suffering a serious crash with the financial market, bitcoin has recuperated in the last week.

The price of BTC had dipped as low as $8,400 and caused liquidations of both longs and short. The liquidations crossed more than 100 million during this. Since the bottom on March 01, the price has seen a profitable climb. However, this climb has formed into a bearish pattern, which indicates a downtrend for bitcoin.

At the time of writing, the price of BTC was $9,119 with a market cap above $165 billion. The 24-hour trading volume of the king coin was well above $35 billion.
<ul>
 	<li style="font-weight: 400">The recovery from a recent dip has caused bitcoin to surge by 10%, however, this surge will soon be nullified.</li>
 	<li style="font-weight: 400">This rally might be cut short due to the formation of a bearish pattern.</li>
 	<li style="font-weight: 400">Alternatively, if the price breaks an important short-term resistance, there are chances of price rising higher.</li>
</ul>
<h2>Two Hour Bitcoin Chart</h2>
<img class="wp-image-161528 size-full" src="https://www.cryptoknowmics.com/crypto/wp-content/uploads/2020/03/download3.png" alt="" width="1804" /> Source: <a href="https://www.tradingview.com/symbols/BTCUSD/?exchange=BITSTAMP">Trading View</a>.

The formation of a rising wedge has caused trouble to bitcoin's slow rise. This predicts a collapse for bitcoin in the upcoming week. A declining trendline from the descending triangle mentioned in the previous article is still acting a resistance. Hence, the rising wedge will seize at or near this point and start its breakout. The breakout from the pattern would allow price to further decline down to two important price points.

The first would be after the price declines by 4.12% decline aka $8,768. Any further bearish pressure aka the selling pressure would result in a breach of this support. The next range would be for the price to climb down to $8,445, which is at 12% from BTC's current price.

Going hand in hand with all of the above is the relative strength index, which already shows a declining buying pressure and hence increasing selling pressure.

An unlikely scenario here would be if buyers shatter through the declining trendline (resistance). This would open up space for bitcoin to surge up to $9,545, a 4.38% surge from its current valuation.

You May Also Read
<ul>
 	<li><a href="https://www.cryptoknowmics.com/crypto/top-bitcoin-wallets-of-2020-to-secure-your-digital-coins/">Top Bitcoin Wallets Of 2020 To Secure Your Digital Coins</a></li>
 	<li><a href="https://www.cryptoknowmics.com/crypto/bitcoin-is-gold-20-better-version-of-gold-eric-demuth-ceo-of-bitpanda/">Bitcoin Is Gold 2.0, Better Version of Gold: Eric Demuth, CEO of Bitpanda</a></li>
 	<li><a href="https://www.cryptoknowmics.com/crypto/bitcoin-lightning-network/">Introducing Bitcoin Lightning Network And Its Working</a></li>
</ul>

Bitcoin's preparation to head south ($8,768, $8,445) is almost complete

The price of BTC had dipped as low as $8,400 and caused liquidations of both longs and short, however the price might slump further

Nick Leeson is an avid trader and cryptocurrency enthusiast. Introduced to cryptocurrencies in early 2016 by a misclick on a YouTube video, Leeson has grown increasingly fascinated by them. He owns cryptocurrencies to trade and complete his goals of growing his accounts from scratch. Leeson's favourite cryptocurrencies include a lot of mid-cap altcoin projects that have the potential to actually disrupt the future. 
Any and all technical analysis/price prediction by Leeson is not a financial and/or investment advice of any sort.

Bitcoin's preparation to head south ($8,768, $8,445) is almost complete

Top Picks