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Technical analysis of the Bitcoin price chart shows that the leading cryptocurrency is still on track to break above $100,000, in light of a pattern formation on the Bitcoin price chart. Notably, one analyst has pointed to the formation of a wedge pattern on Bitcoin’s 4-hour candlestick timeframe chart as the precursor to this bullish upward move, while reversing previous projections of bearish momentum due to a head and shoulders pattern.
The wedge formation: a breakthrough to $100,000?
According to to the analysisposted on the TradingView platform, Bitcoin is currently trading within a bearish wedge pattern, which is often seen as a bullish chart pattern in technical analysis. This falling wedge analysis prospects emerged following the debunking of a head-and-shoulders pattern recently threatened to give a bearish outlook to Bitcoin’s short-term price action.
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The crypto analyst dismissed previous concerns about this head-and-shoulders pattern, labeling it “fake” and has instead strengthened the bullish outlook for Bitcoin. This head-and-shoulders pattern had threatened to steer clear 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 bearish wedge pattern on the Bitcoin price chart. This falling wedge pattern has emerged since December 17, when Bitcoin hit an all-time high of $108,135. Furthermore, this falling wedge is emphasized by the formation of lower highs and lower lows, all of which are characteristic of the bullish pattern formation.
Interestingly, recent price action over the past 24 hours has pushed Bitcoin closer to the upper trendline of the falling wedge. With this formation confirmed, all that remains is a substantial break above the upper trendline, which could see Bitcoin trading above $100,000.
Bitcoin price now
Bitcoin’s price movement over the past 24 hours has once again shown a minor bullish trend after recovering from the $90,800 support level on January 13. This upward rebound comes after Bitcoin came under increasing pressure over the weekend and briefly threatened to dip below $90,000. Instead, the recovery has pushed Bitcoin’s price up 6.8% over the past 48 hours.
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As of now, Bitcoin is trading at $97,000, moving closer to regaining its bullish momentum. The cryptocurrency is just 3% shy of breaking the upper trendline of the descending wedge pattern and registering what could be the end of the recent price correction.
However, current trends in buying activity show a notable slowdown in investor participation, and this could continue into late January and early February before the action of renewed interest begins.
Featured image created with Dall.E, chart from Tradingview.com
