The overall theme of Bitcoin (BTC) in recent days has been calm, after the $5k price was held following a false breakout and subsequent strong rejection on April 10-11. A new short term uptrend higher has tepidly emerged, but volume remains low on average.
A small breakout occuring last night has been quickly rebuffed by the support/resistance (S/R) zone that underpinned BTC’s price action in the last two weeks – from about $5,150-200. Volume on the move, while not completely insignificant, was weak and it quickly lost steam. The breakout has helped form a faint rising wedge, visible below on the 4H chart.
Looking at the 4H RSI, we see largely the same story. A similar S/R pattern is visible on this indicator, with BTC price already once repulsed. BTC could easily fall and return to the RSI uptrend for more consolidation – but here, the latest price history is still open, and the RSI trend is not yet clear.
A closer look at the 1H chart shows the price action respecting, and holding above, the 55 hour exponential moving average (EMA). If it continues to do so, BTC price will retest the S/R zone above $5,150, and then the upper range of the rising wedge. This is of course a bearish pattern, making a breakdown back to $5,000 fairly likely.
There is, however, a mini-black-swan event that may influence price in the coming hours. CryptoGlobe reported hours ago that the leading cryptoasset exchange Binance will delist the Bitcoin Satoshi’s Vision (BSV) crypto, after some dramatic and hostile actions by its creator Craig Wright on some members of the cryptoasset social media community.
The news has already caused a sharp spike in competing Bitcoin Cash’s (BCH) price, and concomitant dump in BSV’s.