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.
A long opportunity?— The Moon (@themooncarl) November 15, 2019
Longs vs shorts on BitMEX: 46.53% vs 53.47% (People are bearish)#Bitcoin just hit its 61.8% fibonacci golden retrace from the beginning of the 40% pump.
Bitcoin is in a falling wedge which has a 70% chance to break up!
Wait for break to play safe! pic.twitter.com/QpI30HgXqJ
According to the technical analysis site “The Pattern Site,” legendary chartist Tom Bulkowski’s studies have found that falling wedges break upward 68% of the time, and break upward by an average of 38%. For some context, a 38% jump from current prices would bring Bitcoin near $11,000.
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 (@CryptoParadyme) November 15, 2019
4H bull div. 618 golden pocket coinciding with support test from previous range. pic.twitter.com/vWj9wuOc6A
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.