Bitcoin price (BTC) is taking a bit of a sabbatical afterward breaking flipping the $vii,600 resistance to support during the morn trading hours of Nov 29.

While the current technical setup is exciting, bulls will demand to supply pregnant enough volume for the price to break to the upside of the rise channel, above the $7,800 resistance and the 61.8% Fibonacci retracement level.

Crypto market daily performance

Crypto market place daily performance. Source: Coin360

Buyers stepped in on Friday morning time, pushing Bitcoin cost from $7,430 to $7,880 earlier pulling back to $7,750. Currently, Bitcoin trades in a rising wedge and the price remains capped beneath the resistance at $vii,800.

Today'due south upside move brought the price above the midpoint of the long term descending channel and the moving average convergence difference (MACD) on the daily and half-dozen-hour time frame suggests that additional upside is in shop.

At the time of publishing the MACD line is crossing above the signal line and the histogram has flipped from negative to positive. Since the motility to $seven,400, many traders have set their brusk term targets at $eight,000 to $eight,100

BTC USD weekly chart

BTC USD weekly chart. Source: TradingView

On the weekly timeframe, the volume profile visible range (VPVR) and previous price action history show that $7,800 to $8,200 zone volition be hard to overcome merely a positive note is that the MACD histogram appears to be in the early stages of an uptrend every bit selling pressure level lessens.

The weekly relative force index (RSI) has besides sharply reversed course and at present aims for 46. Another positive sign is that Bitcoin's price has recovered back higher up the 100-week moving boilerplate.

Every bit mentioned earlier, Bitcoin cost has already recovered to the descending aqueduct midpoint and traders who opened positions at $6,540 will look for Bitcoin price to attain $viii,000 before taking fractional profits and leaving the residual in play with the hope that the digital asset will set a weekly higher high at $8,550.

Bullish scenario

BTC USD 6-hour chart

BTC USD 6-hr chart. Source: TradingView

It appears that Bitcoin has flipped the $7,600 resistance to support and over the brusk-term as price consolidates Bitcoin could pull back to the bottom trendline of the descending wedge at $7,658. This bespeak also lines up with the descending channel midpoint and a high volume node on the VPVR.

On the 6-hour timeframe, the Stochastic RSI and relative forcefulness index (RSI) look ready to roll over but a bounciness off the $vii,600 support could set Bitcoin price to a higher place the $seven,800 resistance and toward the primary trendline of the rising wedge. Meanwhile, the VPVR shows minimal overhead resistance of $8,069. This $8,069 level lines upwardly with the main trendline of the ascension wedge and too the 61.8% Fibonacci retracement level.

If bulls translate a cantankerous above the 61.eight% Fibonacci retracement level equally a bullish signal, a high volume breakout could button Bitcoin price above the 200-day moving average (DMA) to $eight,700 which is quite nearly the main trendline of the long-term descending channel.

Such an occurrence would be very bullish for Bitcoin and likely lead analysts and crypto Twitter to call for a sky-loftier pre-halving bull run price estimates again.

Surly scenario

Rising wedges patterns can lead to cost reversals. They are marked past the loss of momentum every bit the asset's cost rises to higher highs just with shorter candles and a pass up in trading volume equally the toll contracts inside the triangle. As the Stochastic RSI and half dozen-hour RSI rollover, selling pressure at the $seven,800 resistance and profit-taking at $8,000 (the 61.viii% Fib retracement) could all exist signals that the pattern will break to the downside.

It volition accept a high volume spike from bulls to break out of the rising wedge and higher up the overhead resistances mentioned above. If Bitcoin price does opposite below the rising wedge, the price could find support at $7,500 and $7,178.

The views and opinions expressed here are solely those of the writer (@HorusHughes) and do not necessarily reflect the views of Cointelegraph. Every investment and trading move involves take a chance. You should behave your own inquiry when making a decision.