BTC - Rising Wedge Pattern to Watch

1. Apr. 2023

Here I will outline what I currently see for BTC and what to expect from an upside perspective and the downside perspective.

Let's begin with the downside perspective as it seems much more likely. Right now we are in what seems to be a rising wedge . This is generally a very bearish pattern . If we start to breakdown from this rising wedge then people will be watching to see if BTC can flip the $24,800-25,200 level into new support. Since so many people have eyes on this level I think we will go a little lower to flush out overleveraged longs from that area. The measured move for our rising wedge pattern would be $23,900. This would make a lot of sense for price to revisit this level. At least a daily candle close above $29,300 would negate this pattern and bearish thesis.

On the bullish side - If this is a weird ascending bull flag then we would have a measured move breakout that could bring us all the way to $42,000-42,800. Usually the only time we see ascending bull flags are in bull markets. Therefore, if our thesis about the bottom being in is correct then this could be the start of the bull market.

Just remember the faster something goes up the harder it falls. Therefore, it would be better to build more market structure by having a retracement in the short term to build proper market structure. This would create a longer and more sturdy bull market. Patience in this market is key.