Bitcoin (BTC) has gained 36% in two months, offering relief to the battered bulls. However, according to Crypto Twitter, the recovery has suddenly drawn the shape of a bearish pattern on price charts and could be short-lived.
A rising wedge represents a bounce contained between two converging trendlines connecting higher lows and higher highs. 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.
So an occurrence of a rising wedge often has traders preparing for a fresh price drop. Chart-based traders typically take short positions – bets on declines – when prices dive out of the rising wedge, confirming a breakdown. The pseudonymous analyst Nebraskagooner tweeted, "Really not looking hot here after multiple rejections. A rising wedge breakdown would target a $21,500 area."
The predictive power of technical analysis patterns is tied to their...
Your content is great. However, if any of the content contained herein violates any rights of yours, including those of copyright, please contact us immediately by e-mail at media[@]kissrpr.com.
INN caught up with cryptocurrency investment expert Dan Hoover to review the current landscape and where the market may be heading. The cryptocurrency investment marketplace has gone through severa...