Bitcoin is currently trading in a range of $ 107,000 after it wore a bottom of $ 99,000 at the beginning of the week, but its progress is still restricted under a major resistance area, and technical analyzes indicate that the price began to form within a model that dominates the time chart for one hour, and the well -known analyst believes that this model will be crucial to determine whether Bitcoin is able to penetrate the highest level recorded recently.
The wedge model stops Bitcoin’s progress below $ 108,000
Bitcoin is witnessing a state of cohesion in a dumping model during the past few days, as it is clear from the graph with time candles for one hour, and this cohesion came after the price was rejected at a level above a little higher than 108,000 dollars on July 26.
It is important to point out that this model is below the level of 108,351 dollars, which is one of the historical levels of resistance as it is almost the highest price of Bitcoin previously, and this configuration shows the narrow price range of movement, as low peaks are gradually formed that press the price to a narrow range, and at the same time the trading sizes on the network remain relatively stable without a clear direction so far.
According to the Daan analysis, this type of patterns can lead to a strong penetration, but it may take some time before it is formed, and the analyst indicated that the market appears “very volatile”, which is confirmed by the repeated rejections that the price is exposed to the level of $ 108,000 through many time candles for one hour.
A clear penetration above $ 110,000 may completely change the equation
Despite the weak price movements in the short term, the dressing model is gradually accumulated, and the analysis indicates that a certain penetration over the upper resistance line, especially if the price is closed with a power of 108,000 dollars, can be the beginning of a wider emerging movement, and it is better to confirm this penetration through larger time frameworks to ensure reliability.
Analysts advised to look at the longest time frameworks and wait for a clear penetration over the area of 108,000 to $ 110,000, stressing that this will have a widespread impact on the entire market, and it is possible that it will restore attention to alternative currency markets as well.
In the event that this penetration does not occur, Bitcoin will remain stuck within what the analyst described as “huge resistance within a broader scope”, which may expose it to a new wave of negative fluctuations, especially if the level of support fails at the bottom limit of the stretching in steadfastness.
Until the moment of writing these lines, Bitcoin trades at about 107,447 dollars, and although the price structure on the time chart for one hour appears some strength after its bounce from the bottoms close to 106,200 dollars, the buyers are now facing greater challenges due to the narrow movement of the movement, and the formation of the wedge indicates that Bitcoin is preparing for its next main movement, but the next direction remains dependent on how the price interacts with the limits of the model and the level of resistance at $ 108,000.
