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Technical analysis of the bitcoin price chart shows that the leading cryptocurrency is still on track to surpass $100,000 in light of the formation of a pattern on the bitcoin price chart. Notably, one analyst has pointed to a wedge pattern forming on bitcoin's 4-hour candlestick chart as the precursor to this bullish bullish move, while dismissing previous projections of bearish momentum arising from a head and shoulders pattern.
The Wedge Formation: A Breakout Towards $100,000?
According <a target="_blank" href="https://www.tradingview.com/chart/BTCUSDT/FJDDSgxR-btc-can-Reach-above-100k-If-It-Manages-to-Break-this/”>to the analysiswhich was published on the TradingView platform, bitcoin is currently trading within a falling wedge pattern, which is often seen as a bullish chart pattern in technical analysis. This falling wedge analysis This outlook arose after the invalidation of a head and shoulders pattern that recently threatens to bring a bearish outlook to bitcoin's short-term price action.
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The crypto analyst dismissed earlier concerns about this head and shoulders pattern, labeling it “fake” and has instead reinforced a bullish outlook for bitcoin. This head and shoulders pattern had threatened to send bitcoin below the $90,000 mark and essentially invalidates a bullish outlook for the leading cryptocurrency.
As of now, there is a confirmation of a falling wedge pattern on the bitcoin price chart. This falling wedge pattern has formed since December 17, when bitcoin hit an all-time high of $108,135. Furthermore, this falling wedge has been highlighted by the formation of lower highs and lower lows, all of which are characteristic of the bullish pattern formation.
Interestingly, the recent price action over the past 24 hours has seen bitcoin move closer and closer to the upper trendline of the falling wedge. With this formation now confirmed, the only thing left is a substantial break above the upper trend line, which would send bitcoin trading above $100,000.
bitcoin price now
bitcoin price movement over the past 24 hours has shown another minor uptrend after a bounce from the $90,800 support level on January 13. This upward bounce comes after bitcoin faced increasing pressure over the weekend and briefly threatened to fall below $90,000. Instead, the rebound has sent the price of bitcoin up 6.8% in the last 48 hours.
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As of now, bitcoin is trading at $97,000, getting closer to regaining its bullish momentum. The cryptocurrency is <a target="_blank" href="https://bitcoinist.com/bitcoin-drawdown-analysis-metrics-suggest-price-consolidation-can-continue/” rel=”nofollow”>only 3% shy to break above the upper trend line of the falling wedge pattern and record what could be the end of the recent price correction.
However, current trends in buying activity reveal a notable slowdown in investor participation, and it could take until late January and early February before renewed interest kicks in.
Featured image created with Dall.E, chart from Tradingview.com
