- BTC forms wedge as volume weakens above $84K
- $85K EMA caps upside while RSI nears overbought
- 40K BTC at $79K signals strong support below
Bitcoin is trading around $84,400 after recovering from a recent low of $77,000. While the price is higher, current chart patterns suggest a weakening trend. Analysts are observing a potential rising wedge formation on lower time frames, often seen before a downward move. Key technical and on-chain signals are being monitored closely.
Rising Wedge Formation Could Signal Bearish Shift
According to analysis prepared by TradingView analysts, Bitcoin is forming a rising wedge on the 3-hour chart. This pattern typically appears during slowing bullish momentum and can precede a short-term pullback. The wedge has been tightening, with smaller candles indicating indecision among buyers and sellers.
Price movement within this structure has been gradual, and analysts say the recent push lacks volume. According to CryptoQuant, the current rally is not supported by strong trading activity. A price drop below $83,800 could activate a possible retreat to the $79,000–$80,000 level of support.
Glassnode data shows that about 40,000 BTC were accumulated in the $79,000 region. This range has previously provided strong buyer interest. Analysts also point to this area aligning with key Fibonacci retracement levels, making it a critical support in case of further downside.
Resistance Near 200-Day EMA Adds Pressure
The 200-day exponential moving average (EMA) near $85,000 continues to act as resistance. Price rejection from this level has occurred several times over the past week. According to TradingView, bulls have found it difficult to break and hold above this technical line.
Open interest in Bitcoin futures increased from $13.5 billion to $15 billion, according to CME Group data. The increased price volatility becomes more likely due to higher trader activity since both factors stem from the price movements.
The Relative Strength Index (RSI) on the 1-hour chart reached 72, showing that Bitcoin may be nearing overbought conditions. The MACD has also shown a bullish crossover, but without strong volume, the current trend remains uncertain.
