Falling Wedge Suggests Bitcoin Price May Rally Past $10,000
The Bitcoin (BTC) market is bleeding out once again. As of the time of writing this, the price of BTC has reached $8,550, trading a mere 0.5% up in the past 24 hours. Mild reprieve aside, it has become clear that a downtrend is forming, with the cryptocurrency market establishing a series of lower highs and lower lows over the past three weeks.
Though, a number of analysts have asserted that this price action validates a bullish pattern forming on BTC’s chart. This pattern, should it play out in the real world, could take Bitcoin above $10,000, technical analysis studies have shown.
Bitcoin Still in Bullish Wedge Pattern; $10,000 Possible
According to Carl “The Moon,” Bitcoin may be providing investors with an opportunity for some price upside. He remarked in a recent tweet that the technicals are actually favoring bulls, not bears. His thesis is that there is more money on the short side of BitMEX than long, the cryptocurrency has just hit the 61.8% Fibonacci golden retracement level, and BTC is in the midst of a bullish falling wedge pattern — marked by tightening price action and falling price action.
The Moon’s assertion that Bitcoin remains in the thick of a falling wedge has been echoed by a number of other traders, including CryptoHamster, whose work Ethereum World News has covered on a number of occasions.
The wedge and its accessories aren’t the only bullish argument that has been proposed. Analyst Dyme recently laid out his bull case, providing limited hopium to bulls as bearish sentiment has begun to mount for the umpteenth time in a matter of months.
Longing Bitcoin *does* make sense here but I have low confidence in this setup.
Dyme’s bull case is as follows: 1) Bitcoin’s four-hour chart has printed a bullish divergence, with a derivative of the Relative Strength Indicator (RSI) trending higher as prices have collapsed lower; 2) BTC has bounced off a 0.618 Fibonacci Retracement level, dubbed a “golden pocket” of support; and 3) the cryptocurrency is trading in the aforementioned wedge.
Disclaimer: This article is not meant to give financial advice. Any additional opinion herein is purely the author’s and does not represent the opinion of EWN or any of its other writers. Please carry out your own research before investing in any of the numerous cryptocurrencies available. Thank you.