Bitcoin’s Descending Wedge Pattern Indicates BTC Short-Term Bearish Trend: Breakout or Breakdown Targets These Price Levels
According to technical analyst @CryptoFaibik, Bitcoin (BTC) has formed a descending broadening wedge pattern on its shorter-timeframe price chart. This is typically considered a bearish continuation pattern, supporting the existing downward price trend.
Currently, Bitcoin could retest support around $40,000 before potentially bouncing back up towards the wedge’s resistance around $42,600, according to Faibik’s analysis. This lines up with a test of 2022 lows for Bitcoin.
Upside Breakout Targets
However, Faibik notes that if Bitcoin experiences an upside breakout from this descending wedge in the coming weeks, prices could surge as high as $47,000-48,000 by end of December. This would represent reaching new yearly highs for Bitcoin.
A breakout would require Bitcoin convincingly closing above wedge resistance on decent trading volume. If so, the measured move price target is obtained by projecting the widest distance of the wedge upwards from the breakout point.
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Show more +Downside Breakdown Levels
On the other hand, if Bitcoin sees a breakdown from the lower boundary of the wedge pattern, this points to a measured move target around $32,000.
Bitcoin seeing increasing selling volume with a daily close below wedge support would confirm such a bearish breakdown. This could open the door to revisiting the summer 2022 lows near $17,500 in an extended sell-off.
So in conclusion, Faibik and analysts are closely monitoring Bitcoin price action relative to this descending wedge configuration. An upside or downside breakout could set the stage for Bitcoin’s next major price move in the coming weeks.CopyRetry
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