Bitcoin Tests Wedge Top While Ravencoin Soars
Bitcoin suddenly spiked towards the $7,770 ahead of the U.S market open, following a short-lived sell-off towards the psychological $7,000 level earlier this morning.
The move appears to be technically driven as the BTC/USD pair tested the top of the much-discussed falling wedge pattern on the daily time frame. However, rumors persist that the rise may be attributed to a large whale transaction from an unknown wallet to OKEx.
Trading sentiment has improved somewhat since this morning as Bitcoin SV and Binance Coin are both posting gains of 1.5 percent respectively.
Ravencoin is the top performing crypto inside the top 50 by market capitalization, with the RVN/USD pair gaining over ten percent to reach its highest level since November 14th.
The total cryptocurrency market capitalization is $196 billion, which is close to the December price open.
Bitcoin declined to its weakest level since November 27th earlier this morning, after being strongly rejected from the $7,380 level on Tuesday.
The recent spike higher has not yet changed the technical landscape for the BTC/USD pair as price remains trapped inside the large wedge pattern.
As previously mentioned, multiple daily price closes above the $7,300 level are now needed to encourage technical buyers.
The trading range of the falling wedge is extremely broad and spans from $6,300 to $7,750. Traders should expect range-bound trading until a breakout happens.
Ravencoin posted strong double-digit gains on Wednesday, following a rapid recovery from the $0.20 level.
Short-term bulls are currently in control of the cryptocurrency, although the broader downtrend remains in force while the coin trades under the $0.40 level. A bullish falling wedge breakout on the daily time frame pattern points to further gains ahead.
The $0.29 and $0.36 level provide the strongest forms of resistance prior to the RVN/USD pair’s 200-day moving average, at $0.40.
According to the latest data from The TIE, sentiment toward the cryptocurrency market remains neutral at 51 percent.
Bitcoin Cash has the strongest sentiment among the top 10 cryptocurrencies at 65 percent. Meanwhile, Ethereum has the weakest at 34 percent.