BTC on the edge of 10% technical retracement

• Bitcoin is heading for a colossal blackout likely to test lows below $ 53,000.
• A falling wedge pattern on the four hour chart presents a bearish outlook for BTC.

Bitcoin has been stuck in a narrow range between $ 58,000 and $ 59,500 for some time. Attempts to reach highs above $ 60,000 have been thwarted. At the time of writing, BTC is teetering at $ 58,700 while facing bearish momentum.

The four hour chart shows Bitcoin trading at the top of an ascending coin pattern. This pattern is considered bearish in technical analysis. It is formed after a considerable drop in prices followed by a slight recovery.

Two trend lines are used to develop the wedge, where one connects a series of rising highs while the other connects troughs. A failure is anticipated before the convergence of trend lines.

Note that an increase in volume confirms a failure. The drop target is generally accurate and is measured from the highest point to the lowest point in the pattern. For example, bellwether cryptocurrency is likely to slide more than 10% and revisit lows slightly below $ 53,000 if the technical pattern is confirmed.

At the same time, the air pressure will increase as Bitcoin remains below $ 60,000. In addition, a daily close below $ 58,000 may result in further losses towards $ 53,000. All applied moving averages including 50 Simple Moving Average (SMA), 100 SMA, and 200 SMA are in line to cushion BTC from the massive fall.

Four-hour BTC / USD chart

On the upside, the moving average convergence divergence (MACD) shows that the trend is still in the hands of the bulls. The MACD line (blue) stands above the signal line at the time of writing. If the indicator stays in the same position, Bitcoin can trade between $ 58,000 and $ 59,500 much longer.

Intraday Bitcoin Levels

Spot rate: $ 58,700

Trend: bearish

Volatility: low

Support: $ 58,000, $ 55,000 and $ 52,500

Resistance: $ 59,500, $ 60,000 and $ 62,000