Bitcoin forms bullish structure looking very bullish

Bitcoin is building a bullish structure, even if its short-term direction favors a downward trend. This is done according to a textbook-like technical pattern known as the “Falling Wedge”. The indicator is confirmed when an asset crashes continuously, leaving reactive higher lows and higher highs. As a result, two contracting, descending trend lines behave as parameters for the asset. It looks like Bitcoin is trending down in a falling wedge. The top of the pattern is at $ 10,428 – a resistance level on June 1 that corrected the bitcoin correction down. Since then, the cryptocurrency has tested the upper trend line as resistance and the lower trend line as support.

 

The result of a rising wedge is typically bullish. As Bitcoin continues to trend down and break below the key support levels, the upward calculation should come as soon as BTC closes towards the wedge tip – the intersection where the upper and lower trend lines intersect.After that, the cryptocurrency should break bullish above the upper trend line and move towards an upward target near the top of the wedge. In the current case, this high is almost $ 10,428, which roughly means the upward mark of the pattern at $ 10,500.

 

Further declines are imminent

The conical tip of the wedge pattern is currently at $ 8,600. The outlook makes the cryptocurrency very bearish in the short term as there is a risk of panic selling by weak traders if it drops towards $ 8,600.A prominent analyst on TradingView.com sees Bitcoin crashing up to $ 5,000 should he close below $ 8,600 – a scenario that would invalidate the rising wedge.