RATE Group | Bitcoin Could Fall Hard, This Textbook Indicator Shows
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Bitcoin Could Fall Hard, This Textbook Indicator Shows

03 Feb Bitcoin Could Fall Hard, This Textbook Indicator Shows

Posted at 15:17h in Bitcoin News by

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Bitcoin’s dreamy price rally in 2020 could hit a dead end in the coming sessions, according to a bullish reversal indicator.

The benchmark cryptocurrency is forming a Rising Wedge pattern as confirmed by its price consolidating between upward sloping resistance and support. More data that confirms the Wedge formation is a faster establishment of lower highs than higher highs – and a drop in volume during the pattern’s formation.

bitcoin, cryptocurrency

Rising Wedge confirmed as bitcoin uptrend start contracting between two rising trendlines | Source: TradingView.com, Coinbase

The Rising Wedge pattern is also getting formed during a medium-term downtrend, with swing highs nearing circa $14,000 and swing lows at $6,430. That’s another parameter that validates the Wedge’s potential to cause havoc.

Down $2,000

In simple terms, the Rising Wedge helps identify the exhaustion of an interim uptrend within the framework of a larger timeframe. Day traders take long opportunities on a bounce from the lower…

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