Bitcoin has been trading in a sideways market for a while now, ranging and compressing within a rising triangle. This triangle pattern is a bullish pattern with a more than 70% accuracy rate.
A break out of this triangle to the upside could see the bullish momentum of Bitcoin return and the bitcoin price finally break through the $10k resistance region that has held price back for a while now.
And Within this rising triangle pattern, we are currently seeing another bullish pattern get formed. And in this bitcoin analysis, I will be talking about this new pattern, my outlook, entry criteria, and targets for it.
New Bullish Signal
Within the rising triangle we are currently trading in, Bitcoin is currently forming a falling wedge pattern. This pattern is very bullish and we can expect to see price break to the upside.
The most important thing about this falling wedge pattern is that “it is nearly complete” and we can expect to see price breakout from the converging channel within the next 24 hours to 48 hours.
Levels to Watch Out for and Targets
The most important level to watch out for to confirm the bullish move to the upside is the top of the converging channel. A break out of this resistance can see price accelerate to as high as $10,000, where the price will face the resistance from the top channel of the larger forming rising triangle.
This bullish move might also lead to the breakout of the larger rising triangle pattern and a resume of the bull run to the $20,000 previous highs. However, for this to occur, we must first see a clear breakout of price and close above the $10,000
Point of Invalidation for The Bullish Outlook
While the falling wedge is a bullish pattern, you must remember that there is still a 30% chance that we might see a fail of this pattern. This will lead to a price break down and fall to the downside.
The most import level to watch out for to confirm this bullish outlook is “the base of the falling wedge channel”. I want to see price remain above this base and begin to move up for me to hold on to my bullish outlook.
A clear break of price and close below this support region could see an increased bearish pressure and the fall of price lower to the $6,000 region.
As for my entry, I will only take a trade position once price breaks through the top of the channel for a buy position or the bottom of the channel for a sell position.
To gain more information on how to partake in this Bitcoin Bull run and trade this cryptocurrency using my Bitcoin analysis, you can read my How To Trade Bitcoin Guide. You can also check my top list of Best Bitcoin Exchanges To Trade With.