Bitcoin Price Analysis: BTC/USD wedge pattern breakout or bull trap?

Spot rate: $10,130

Relative change: -56

Percentage change: -0.56%

Trend: Bullish

Volatility: High

BTC/USD daily chart

Bitcoin's incredible performance in the last couple of months follows an impressive breakout from a long-term falling wedge pattern that started its formation since the June 2019 highs around $13,884. The recovery has stepped above $10,500 in February, further confirming that Bitcoin's bullish phase ahead of the May 2020 halving event. However, the formation of a short term rising wedge pattern paints a picture of a bull trap that could get many traders and investors pants down. On the brighter side, the effects of the wedge pattern could be averted by pulling BTC above $11,000 and towards $12,000 in the near term.

BTC/USD 2-hour chart

The short term technical scenario is bearish for Bitcoin especially with upward movements have been restricted under $10,200. The RSI has started its retreat from the overbought and continues downward motion could attract more sellers to join the party. Support is expected at $10,100 while the 100 SMA at $10,057 is expected to anchor the price if losses aim at $10,000.