Caution is advised as Bitcoin’s price chart shows a “rising wedge” pattern, signaling a potential pullback, warns analyst Josh Olszewicz. Despite the cryptocurrency’s recent surge to new record highs of over $70,000, the technical analysis theory suggests that this pattern is bearish. The rising wedge pattern consists of upward-sloping trendlines that converge towards a single point, indicating weakening bullish momentum and potential price losses. Furthermore, the 10-day rate of change has detached from the rising prices, indicating building downside momentum and predicting possible price retracements. However, Olszewicz believes that any pullback will likely be short-lived due to anticipated ETF inflows and continued purchasing by MicroStrategy’s CEO, Michael Saylor.
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Beware of Bitcoin’s ‘Rising Wedge,’ Chart Analyst Says
