Bitcoin (BTC) Price Analysis: Falling Wedge Pattern Signals Possible Bullish Reversal Amidst Negative Sentiment
The BTC price has been in a state of correction for over a month. In the 4-hour trading chart, the price is strictly bouncing off from downward-sloping trend lines, which show the possibility of a falling wedge pattern. BTC has lost over 12% from the $25,300 top level and is exchanging hands at $22,460.
BTC Price Analysis
Bitcoin started the new correction phase in the second week of February when the price turned downside from the resistance level of $25,300. The falling wedge pattern governs the pullback below the $22,500 support level.
The converging lines of the falling wedge pattern could signal the loss of bearish momentum, allowing buyers to gain full control of the trend. As of Sunday, BTC is fluctuating above the support trendline and is preparing for a bullish reversal. The world’s leading crypto could show a minor rally to the overhead trendline level.
However, market participants searching for long-term opportunities should remain patient and wait for the bull cycle to break out from the resistance trendline. It will indicate the bounce back of bullish momentum and resume BTC price recovery. The breakout may raise the BTC price and challenge the $25,300 mark.
BTC Technical Outlook
The RSI is currently at 43.5%, dipping below the expected 45.6%. It is a clear indicator that sellers have control over the market sentiment. If bearish pressure continues, the price of BTC will lose the support of the 50-day EMA, giving short sellers more room to drive down the price.
Based on the intraday levels of Bitcoin, the spot rate currently stands at $22,448. The bullish trend indicates that the price is expected to continue its upward trajectory. However, the market’s high volatility can lead to sudden price fluctuations.
There are two key resistance levels to watch: $22,500 and $23,900. The bullish trend and potential gains could continue if the price breaks through these levels. On the other hand, there are also two important support levels to remember: $21,500 and $20,500.
If the price falls below these levels, it could indicate a shift in the trend and further potential losses. The doubts raised by Silvergate have significantly impacted the price as the week concludes.
Investors will closely monitor the news in the upcoming week, as the crypto market has proven vulnerable to negative market sentiment. In addition, various scandals, such as the FTX scandal, have caused many market participants to question the stability of crypto as a viable investment.
Analysts expect the price of Bitcoin to remain in flux for some time due to the above news. However, if the right conditions converge, the coin could see an unprecedented bull run.