Leading cryptocurrency Bitcoin (BTC) had a poor weekend, with its price falling 10% and another 2% in the past 24 hours to nearly $57,117. Currently, Bitcoin is in a descending wedge pattern, which traditionally suggests a possible decline. If Bitcoin falls below this key level, it could drop to around $54,000.
Past price patterns suggest that Bitcoin could rebound from current levels.
Will history give us a bullish surprise?
I compared Bitcoin’s current chart to its chart from August and September of last year.
Both charts show a similar falling wedge pattern as in the month above, which initially suggested that prices could fall. Despite this, Bitcoin recovered slightly in September and rose sharply before the end of the year.
A chance of a bull market turnaround?
I believe that Bitcoin could be on the verge of repeating this bullish pattern. If Bitcoin can hold its ground and surge from current levels, it could set new all-time highs by the end of this year.
However, the current candlestick pattern is similar to those seen in previous years, giving investors hope for a positive turnaround for Bitcoin. As Bitcoin struggles with this technical setup, all eyes are on whether it will break the bearish forecast and potentially surge to new highs.
Bitcoin Price Analysis
Bitcoin has had a bearish start to the month, with prices falling 10% over the past week. Currently, Bitcoin is consolidating below $58,000 after encountering resistance at the $59,000 resistance line and the key 200-day moving average (also around this price). From the chart analysis, the market may soon test the $56,000 support level.
However, the RSI indicator has fallen below the 50% mark, suggesting a slight bearish momentum. If the $56,000 support fails to hold, there could be a further drop towards the $52,000 support area.
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