- Bitcoin price remarkably ascended from levels under $30,000 but stalled slightly above $32,000.
- A falling wedge pattern adds credence to the bullish outlook, but key resistance stands in the way of recovery.
- Elon Musk’s founded Space Company, SpaceX owns Bitcoin.
Bitcoin price bulls displayed the strength of their muscles on Wednesday, pulling up from areas under $30,000 to daily highs of $32,807. The recovery started as a reflex action to the declines earlier in the week but was later boosted by Elon Musk’s appearance at the B Conference.
The founder of Tesla, alongside Twitter CEO Jack Dorsey, among other industry figures, discussed demystifying cryptocurrencies. Bitcoin price took another step north after Musk revealed that his Space Company, SpaceX, owns Bitcoin and plans to hold long term. The billionaire also said that he owns Ethereum in addition to Bitcoin.
Bitcoin Price Recovery Suffers Setback
Besides the fundamentals catching with Bitcoin’s improving technical levels amid the B Conference, resistance above $32,000 seems to have spoilt the bulls’ party. A break above a falling wedge, which is regarded as highly bullish, affirmed the uptrend.
As the wedge pattern formed, Bitcoin volume dwindled significantly, resulting in a consolidation period. The breakout from the pattern is usually on the upside and confirmed as the price cracks the resistance at the upper trend line. An uptick in volume adds credence to the bullish outlook as buyers swing into action to take advantage of the rallying prices.
BTC/USD four-hour chart
Resistance at the 100 Simple Moving Average (SMA) cut short the uptrend, thus, initiating a correction. BTC trades marginally below $32,000 while bulls battle to secure higher support at the time of writing.
The 50 SMA is in line to provide the much-needed support, preventing potential losses back to $30,000 and $29,000, respectively. Despite the recovery delay above $32,000, the Moving Average Convergence Divergence (MACD) has a bullish impulse, inferring that the uptrend could resume eventually.
Bitcoin Price Intraday Levels
Spot rate: $31,927
Trend: Bearish biased
Support: The 50 SMA
Resistance: The 100 SMA and $34,000