Bitcoin’s Plummeting Wedge Pattern Hints at Unstoppable Rise
Bitcoin’s price has plummeted from $70,000 to new record lows below $60,000 in less than two weeks. The cryptocurrency’s 10-day rate of change has soared alongside the falling prices, indicating an unstoppable upward momentum is building. This convergence often heralds price surges. However, crypto analyst and trader Josh Olszewicz predicts the rise to be meteoric due to ETF outflows and MicroStrategy’s sudden selling.
Plummeting Wedge Pattern
A plummeting wedge pattern comprises downward-sloping trendlines that connect highs and lows and diverge toward a single point known as the nadir. The diverging nature of trendlines indicates a steady strengthening of bullish momentum. An eventual wedge breakout, or the move above the trendline connecting highs, represents a bullish development, paving the way for astronomical price gains.
Coupling 10-day Rate of Change
The 10-day rate of change has coupled with the falling prices, suggesting an upward momentum is building and often foreshadows price surges. 20% or more surges were common during the 2017 and 2020-21 bear markets.
Expectations
Despite the potential surge, Olszewicz expects it to be monumental due to ETF outflows and MicroStrategy’s sudden selling.
