Bitcoin price has fallen from new all-time highs set this week before Coinbase Global Nasdaq’s public rollout, but there are still no signs of an end to the bull run.
However, a strongly bullish pattern has been gradually changing and is now turning into a bearish pattern. The fight between bears and cops is clearly not over. Here’s a closer look at the two patterns that can affect or cancel the uptrend, whichever is confirmed.
Bitcoin price breaks from the highs of the Coinbase listings
The cryptocurrency market is an uninterrupted speculative place where Bitcoin investors seek to rely on a combination of sentiment, fundamental, and technical analysis to predict future outcomes of price action.
Users can quickly write off such predictions and claim they are little more than witchcraft or nonsense. There are several trading legends who have made careers, but naysayers always will.
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The reason for this skepticism is the fact that these predictions are only there to increase the odds and that the practice is never a perfect process. It is also an ongoing study that requires a regular review of market conditions and the latest usable data.
The data is provided in the form of Japanese candlestick highs, lows, open and close. It comes through moving averages, overlays, and oscillators. And it also comes from chart patterns that can change shape even if Bitcoin initially behaves as expected.
On the left, we have a bullish triangle and on the right, a bearish wedge | Source: BTCUSD on TradingView.com
Bearish or Bullish: Which Crypto Chart Pattern is Confirmed?
Even on Coinbase listing day itself, Bitcoin ended the day bloodier than it started. The leading cryptocurrency by market capitalization fell a maximum of 5% that day.
Any higher move that might have been rejected eventually sent the crypto asset back down to retest the resistance level of a strongly bullish chart pattern: the ascending triangle.
The problem is that the pattern has now turned into a now bearish pattern and looks worse over time. Another exacerbation of danger are literally dozens of bearish signals lingering on the quarterly timeframe.
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Along with the bearish wedge shape, the MACD crossed bearish on the weekly timeframe, and a rare indicator of top calls on the cycle turned the lights off for bulls soon enough.
Although the signal has appeared, Bitcoin is now much higher than it was when it first straightened its ugly head. Bears got it back down, and what comes next will determine the fate of crypto for the next several months.
Will the price move confirm the resistance as support, and therefore the ascending triangle, before moving much higher? Or will the bearish wedge continue to take shape and cause an unexpected collapse?
Featured image from Deposit Photos, Charts from TradingView.com