A rising wedge breakdown would target a $21,500 area." The pseudonymous analyst Nebraskagooner tweeted, "Really not looking hot here after multiple rejections. Chart-based traders typically take short positions – bets on declines – when prices dive out of the rising wedge, confirming a breakdown. So an occurrence of a rising wedge often has traders preparing for a fresh price drop.
The converging nature of trendlines indicates volatility is contracting as prices rise, a sign of recovery losing steam – and that tension is building, with sellers contesting the move higher. "BTC is consolidating within a rising wedge, which is a bearish pattern," Milan Vojtek, a technical analysis enthusiast, tweeted early Tuesday, echoing the views of his Twitter compatriots.Ī rising wedge represents a bounce contained between two converging trendlines connecting higher lows and higher highs. However, according to Crypto Twitter, the recovery has suddenly drawn the shape of a bearish pattern on price charts and could be short-lived. It signifies a possible reversal in the trend and is the opposite of the bullish falling wedge pattern, which occurs at the end of a downtrend. This area served as an upper boundary of the recent consolidation channel, now it is strong support with a combination of SMA50 daily and the middle line of the daily Bollinger Band located on approach.Bitcoin (BTC) has gained 36% in two months, offering relief to the battered bulls. The rising wedge pattern is a bearish chart pattern commonly observed at the end of an upward trend in financial markets.
A sustainable move below this barrier will bring $7,300 back into view. Once it is broken, the sell-off may continue towards $7,700. It is reinforced by SMA100 daily and the upper line of the daily Bollinger Band located around this barrier. On the downside, the initial support is created by a psychological $8,000. Bitcoin (BTC) Buy 22,175 -4.43 Past 7D Feb 08 Feb 09 Feb 10 Feb 11 Feb 12 Feb 13 Feb 14 21,500 22,000 22,500 23,000 LIVE TODAY 24H 7D 1M 3M 6M YTD 1Y ALL Market Cap 426.13B 24H Volume 71. If it is cleared, SMA200 (Simple Moving Average) daily at $9,200 will come into focus. Once it is out of the way, the upside is likely to start snowballing with the next focus on $8,450 (the recent high and 50% Fibo retracement) and psychological $9,000. The coin is trying to break the critical resistance created by the upper boundary of the descending wedge (currently at $8,350). The world’s largest cryptocurrency hit $8,464 during early Asian hours before retreating to $8,348.
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Professional investors are also back from the Christmas break and starting to deploy capital - this is called the January effect in the stock market.Īpart from that, traders note that the momentum might have been triggered by USDT market capitalization adjustment on CoinMarketCap as trading bots interpreted the sudden increase of Tether’s market value as a buy signal. Emmanuel Goh, who runs crypto derivatives tracker Skew, points out to the so-called January effect.īitcoin and gold are well supported due to rising tensions between the U.S. However, geopolitics is not the only factor behind BTC stellar growth.
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Also, being free from political control, Bitcoin is regarded as an insurance against sanctions, frozen bank accounts and other hostile actions of the governments that may deprive people of access to their money. It is not all about geopoliticsĮxperts believe that Bitcoin behaves like a safe haven, attracting capital flows in periods of uncertainty. Each pattern can have some ideal volume associated with it at different times. It's worth noting that trading volume is another important aspect of reading chart patterns. A lower point of support is repeatedly tested until it can no longer hold. and Iran are considered as one of the factors behind the sharp growth of the cryptocurrency markets. A descending triangle is a bearish version of an ascending one. Concerns about a military conflict between the U.S. Bitcoin is driven by a combination of factors.īitcoin (BTC) has printed the sixth bullish candle in a row and taken down several important resistance levels on its trip to the North.
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