If history is any indicator, the rising wedge pattern breakdown may cause a drastic downfall in Bitcoin price. Since the beginning of 2022, this particular pattern has emerged twice, and the result of the previous two caused 30-40%. Thus, if market action follows this pattern theory, the BTC price may plunge below $19000 and dive to a new lower low.
Key points BTC analysis:
- The Fibonacci indicator reflects the BTC price has fallen below the 50% retracement level
- The 20-day dynamic support flipped to a possible resistance
- The intraday trading volume in Bitcoin is $25.3 Billion, indicating a 27.3% loss
On August 16th, the BTC price gave a bearish breakdown from the rising wedge pattern signaling the end of the short-term recovery. The resulting downfall aligned with the news that US Fed may increase its interest rate in September by 0.75, triggering a significant retracement.
The post-retest fall accounted for a 12% loss which pulled the BTC price to $20785 with local support. However, following such a steep drop, the price has slightly recovered in the past two days, registering a 3% gain.
