Technical analysis of the Bitcoin price chart shows that the major digital currency is still on track to break above $100,000 due to the formation of patterns on the Bitcoin price chart. Specifically, an analyst has identified a wedge pattern forming on Bitcoin's 4-hour candlestick chart as a precursor to this bearish move, dismissing earlier predictions of bearish trend arising from a head and shoulders pattern.
The Creation of the Wedge: Breakthrough to $100,000?
according to to the analysisposted 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 a view arose after a recent head and shoulders pattern invalidation threaten to take a bearish view to short-term Bitcoin price action.
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The crypto analyst dismissed previous concerns about this head and shoulders pattern, calling it “false” and is in place It confirmed a bullish outlook for Bitcoin. This head and shoulders pattern had threatened Bitcoin below the $90,000 mark and basically invalidates a bullish outlook for the major cryptocurrency.
So far, there is confirmation of a falling wedge pattern on the Bitcoin price chart. This collapsing wedge pattern has been in the making since December 17, when Bitcoin reached an all-time high of $108,135. In addition, this falling segment is characterized by the formation of lower highs and lows, all of which are typical of the formation of a bullish pattern.
Interestingly, the recent price action in the last 24 hours on Bitcoin is rising closer to the top line of the falling series. With this formation now confirmed, the only thing left is for a major break above the upper trend line, which would send Bitcoin trading above $100,000.
Bitcoin price today
Bitcoin's price movement over the past 24 hours has shown another slight movement after rebounding from the $90,800 support level on January 13. Instead, the rebound has pushed the price of Bitcoin up by 6.8% over the past 48 hours.
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So far, Bitcoin is trading at $97,000, getting closer to regaining its bullish trend. The cryptocurrency just shy of 3% of breaking above the upper trend line of the falling wedge pattern and recording what could be the end of the recent price correction.
However, current trends in purchasing activity indicate a significant slowdown in investor participation, and it may reach the end of January and the beginning of February before new interest activity begins.
Featured image created by Dall.E, chart from Tradingview.com
