Bitcoin is in a falling wedge as bears eye drop to key area

By James Gray·3 July 2020·1 min read

Key Points

Bitcoin fell to $8,980 this week as sellers pushed into a trading range that has held since May.
Buyers keep defending the $9,000 support level.
Rallies above $10,500, where a triple top now marks the

Bitcoin fell to $8,980 this week as sellers pushed into a trading range that has held since May. Buyers keep defending the $9,000 support level. Rallies above $10,500, where a triple top now marks the ceiling, have failed repeatedly. Technical analysts expect this standoff to crack with a move lower.

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The cryptocurrency has logged a series of lower highs over the past month. The latest peak sat near $9,100, below the one before it. A falling wedge pattern combined with an inverse head and shoulders formation points to further weakness. Analysts target $8,600 as likely. A recovery could reach $9,450, though momentum favors bears.

Bollinger Bands have compressed to their March 2020 low. This volatility measure tightens before major moves. The market is coiled and set to break.

Institutional traders on the CME hold over 2,000 short positions. Professional money has not been this bearish since March, when bitcoin crashed to $3,800. That precedent signals major downside risk.

Bitcoin traded below $9,200 in the past 24 hours, touching $8,981 as weakness persisted. The daily close at $9,095 extended losses into July's start, with the price down 1.07% at the time of writing. The Elliott Oscillator has turned green. The RSI has not reached extreme bearish levels, giving bulls room to defend.

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