After being rejected below the $ 11,000 mark, Bitcoin has weathered a period of bearish turbulence for the past 48 to 72 hours. With the price of the cryptocurrency consolidating near $ 10,300 at press time, some recovery was seen on the charts. However, resistance at $ 10,412 continued. A look at the charts of Bitcoin revealed that a period of high volatility may be imminent for the world's largest cryptocurrency.
Bitcoin 1 hour chart
In particular, the 1-hour chart for Bitcoin showed a rising wedge pattern at the time of writing. However, the possibility existed that the pattern would not apply to an outbreak in the next few hours. After falling at $ 10,200, the valuation is more likely to have moved more sideways and possibly retest the resistance levels at $ 10,412 and $ 10,562.
The 50 moving average must be viewed as strong overhead resistance, but a rapid rise in buying pressure can push the price of crypto well above the moving average. Additionally, the Awesome Oscillator indicated that despite the bullish trend, it wasn't enough to cause the charts to reverse.
Bitcoin 2 hour chart
While the 1 hour chart was fraught with confusion, more clarity was seen on the 2 hour chart. The two hour chart outlined the possible market structure for Bitcoin's movement in the coming days, rather than recording an accurate price movement. As can be seen in the attached graph, the market structure has barely been broken at the time of writing, and Bitcoin may switch between parallel channels before registering another flash crash to the USD 9,980 support level.
The transition may not follow exactly on the green line, but structurally it should be expected to retest at $ 9980 before expecting another jump north.
The stochastic RSI has been completely bullish in the short term, so the price may soar to $ 10,560 before moving south. After reaching the peak, the orange line at the overbought position should experience a bearish transition as selling pressure increases again.