Technical analysis of the Bitcoin price chart shows that the leading cryptocurrency is still on the way to breaking above $100,000 in light of a pattern formation on the Bitcoin price chart. Notably, an analyst has pointed to a wedge pattern forming on Bitcoin’s 4-hour candlestick timeframe chart as the precursor to this bullish upside move, while dismissing earlier projections of bearish momentum arising from a head-and-shoulders pattern.
The Wedge Formation: A Breakout To $100,000?
According to the analysis, which was posted 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 outlook arose after the invalidation of a head-and-shoulder pattern that recently threatened to bring a bearish outlook to Bitcoin‘s short-term price action.
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The crypto analyst dismissed prior concerns over this head-and-shoulders pattern, labeling it as “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 invalidate 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 been in formation since December 17, when Bitcoin reached 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, recent price action in the past 24 hours has seen Bitcoin inching closer to the upper trendline of the falling wedge. With this formation now confirmed, the only thing left is for a substantial break above the upper trendline, which would send Bitcoin trading above $100,000.
Bitcoin Price Now
Bitcoin’s price movement over the past 24 hours has exhibited another minor bullish trend after a rebound from the $90,800 support level on January 13. This upward bounce comes after Bitcoin faced mounting pressure over the weekend and briefly threatened to dip below $90,000. Instead, the rebound has pushed Bitcoin’s price upward by 6.8% over the past 48 hours.
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As of now, Bitcoin is trading at $97,000, edging closer to reclaiming its bullish momentum. The cryptocurrency is just 3% shy of breaking above the upper trendline of the falling wedge pattern and registering 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 might reach towards the end of January and the beginning of February before the action of renewed interest begins.
Featured image created with Dall.E, chart from Tradingview.com
