Glassnode founders, experts in crypto analytics, have suggested that Bitcoin (BTC) is setting the stage for a significant surge. In their analysis, they indicated that Bitcoin might have hit the bottom in a classic falling wedge pattern, which typically precedes a bullish reversal. If this pattern holds true, BTC should rise to $42,000 before a retest of $40,500 and potentially climb to much higher levels, signaling a positive outlook.
The falling wedge pattern is a technical analysis tool used to predict potential uptrends in a token’s price. It is characterized by a series of lower highs and lower lows forming a wedge shape on the chart. As the pattern narrows, it suggests weakening selling pressure. A price breakout above the upper trend line of the wedge is generally considered a bullish signal.
Additionally, the analysts employ the Elliott Wave theory, which anticipates price movements based on crowd psychology manifested in waves. Traditionally, the theory proposes that price movements occur in a five-wave pattern following a three-wave “ABC” correction.
According to the analysts’ graph, after a five-wave decline, an uptrend seems to have begun. They also point to the Relative Strength Index (RSI), a widely-used momentum indicator that aims to determine whether a token is overbought or oversold, to suggest a bullish trend for Bitcoin.
At the time of writing, Bitcoin has seen a 2% increase over the last 24 hours, trading at $40,073, reinforcing the analysts’ optimistic projections for its near-term trajectory.