Cryptocurrency analyst Josh Olszewicz has identified a technical pattern in Bitcoin‘s recent surge above $70,000 that suggests an impending price correction for the world’s leading digital currency. The technical pattern known as a rising wedge is indicative of a potential downturn following Bitcoin’s swift ascent from $60,000 in just under a fortnight.
Spotting the Bearish Formation
Olszewicz elucidates that the rising wedge—a structure characterized by converging upward-sloping lines—could end with a bearish reversal. He also observes that momentum indicators, including the 10-day rate of change, are not aligning with the uptrend, hinting at a forthcoming reversal in Bitcoin’s price movement.
Potential Impact and Long-Term Outlook
Despite the looming short-term bearish scenario, the analyst points out that historical pullbacks of 20% or more were not uncommon during previous bull cycles, as seen in 2017 and 2020-2021. He also notes supportive factors, such as the entry of spot ETFs in the United States and sustained Bitcoin acquisitions by institutional entities, notably MicroStrategy, hinting that any dip is likely to be transient.
The analysis underlines the importance investors place on technical chart patterns and indicators to predict market movements. Bitcoin’s recent milestone has captured the focus of individual and corporate investors alike, while the introduction of crypto investment vehicles like spot ETFs has significantly affected the market’s behavior.
As Bitcoin surpasses the significant $69,000 resistance level and ventures into uncharted pricing territory, market watchers remain vigilant for shifts in momentum. Currently, Bitcoin is valued at $73,428, showing a modest 0.65% increase in the past day. Despite the potential for abrupt short-term fluctuations, the consensus among experts suggests a bullish trend for Bitcoin in the foreseeable future, buoyed by wider institutional adoption and blockchain technology acceptance.