Bitcoin (BTC), the top cryptocurrency, has had a tough weekend. Its price dropped by 10% and fell another 2% in the past 24 hours, now hovering around $57,117. Bitcoin is currently forming a falling wedge pattern, which often suggests a potential decline. If the price drops below this key level, it could fall to about $54,000.
Could a rebound be coming our way?
Decode Bitcoin analyst and Elliott Wave Technician points out that Bitcoin might bounce back from its current level, citing a similar pattern from the past. In an interesting tweet, the analyst compared Bitcoin’s current chart to charts from August and September of last year.
The charts from those months showed a similar falling wedge pattern, which initially suggested a drop in price. Despite this, Bitcoin recovered slightly in September and ended the year with a significant rally. This raises the possibility that Bitcoin might follow a similar bullish trend again.
The analyst suggests that Bitcoin might be on the brink of repeating this bullish pattern. If Bitcoin manages to hold its ground and surge from the current level, it could potentially reach new all-time highs by the end of this year.
However, the current candle patterns are echoing those from previous years, fueling hope among investors for a positive turnaround. As Bitcoin grapples with this technical setup, all eyes are on whether it will defy the bearish predictions and potentially soar to new heights.
Bitcoin started the month with a decline, falling 10% over the past week. It’s now consolidating below the $58,000 mark after facing resistance at $59,000 and the 200-day moving average. Chart analysis indicates that the market might soon test the $56,000 support level.
However, the RSI indicator has dropped below 50%, signaling a slight bearish trend. If the $56,000 support doesn’t hold, Bitcoin could see a further decline towards the $52,000 support zone.
As Bitcoin’s future unfolds, one thing is certain: the crypto market will never be the same.
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