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- Bitcoin rising wedge pattern signals possible volatility as critical resistance approaches.
- EGRAG warns Bitcoin could revisit lower support if momentum weakens significantly.
- BTC bulls must reclaim resistance before bearish pressure accelerates across cryptocurrency markets.
As a result of this new market structure, the Bitcoin community is once again in a state of cautiousness as a widely followed Bitcoin analyst has described a potential downside scenario that could see the price of Bitcoin heading much lower in the near future. According to the latest technical parameters by EGRAG CRYPTO, the momentum might soon run out in the bull market for Bitcoin. On the three-day time frame, Bitcoin has been consolidating in a micro rising wedge pattern. Over the past few years, this trend has been bearish but it does provide a temporary rally extension period prior to a correction.
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If buyers are able to push the price of Bitcoin beyond the wedge resistance, the analyst said it may be able to move toward the $100,000 to $104,000 range. However the chart also suggests that if there isn’t momentum maintained, Bitcoin may face a much bigger bottoming phase. Also, EGRAG pointed out that rising wedges are successful in breaking downward trends statistically almost 70% of the time. Traders are therefore watchful about seeing if Bitcoin can break the trend before bear pressure intensifies.
Historical Probabilities Favor Bearish Resolution
EGRAG also noted that historical trends indicate that wedges are more likely to fail up than down. The analyst says that bearish resolutions take place about 65% to 70% of the time, compared with bullish continuations. As a result, traders remain cautious overall, albeit with the same positive outlook on the bigger picture, when approaching the overall trading structure. The price action within the wedge is also slowing, creating major resistance targets for Bitcoin, and a narrowing price range.
Also, the chart indicates that volatility may start to grow in a hurry when price breaks out of the current formation. In the case of a breakout or breakdown, the possibility has caused people to focus on confirmation signals. Bitcoin Bulls are holding steady at key support levels.Bitcoin Bulls are maintaining strong support levels.
Despite heightened market indecision, Bitcoin is still being traded above the key support level around $81,000. This is now one of the more critical levels to hold the bull market intact in this cycle. If buyers manage to break this structure upward and confirm strongly, they will have one last chance at pushing Bitcoin through the resistance level of $100,000 to $104,000, EGRAG says.
Additionally, a persistent breakout above this wedge could also render the bearish thesis considerably vulnerable and bring back confidence in the crypto market in general. The strong buying pressure would also be beneficial for Bitcoin heading towards higher resistance levels later this year.
Bitcoin Needs Strong Breakout to Invalidate Bearish Pattern
In the meantime, the resistance range from $100,000 to $104,000 is the key level for bullish continuation. If it does break out of that zone, the bearish pattern will be completely reversed, and the odds of another extension move towards the higher resistance levels will be higher.
Additionally, the study highlighted that during periods of volatility, emotional responses can often divert traders. Rather, EGRAG advised the market to stick with structural confirmation and not short-term market noise. Bitcoin has been able to maintain key long-term support levels in the face of uncertainty. But, the current wedge pattern now focuses attention on future price action and traders are looking to see if the bulls can continue to lead the trend.
With Bitcoin’s technical structure now firmly displayed with bull and bear sides, the momentum is building within a rising wedge pattern. There’s upside potential to $104,000, but analysts warn that once key support levels are breached, then the correction phase could start in the cryptocurrency market, and it may be much bigger.
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