Bitcoin Correction Warnings Are Coming One After Another From Analysts! Famous Crypto Analyst Pointed Attention to This Formation in BTC

Bitcoin continues its rapid rise, chart analysts cryptocurrency It warns of a worrying pattern appearing on the unit’s price chart.

Bitcoin’s ‘Rising Wedge’ Points to Potential Pullback, Analysts Warn

According to experts, Bitcoin’s rise to new record highs above $70,000 in less than two weeks has taken the shape of a “rising wedge,” a bearish signal that could herald a significant pullback in the near future.

Josh Olszewicz, a leading crypto analyst and investor, warned that a rising wedge formation typically precedes a decline in prices.

Olszewicz emphasized the importance of this pattern, suggesting that it could indicate a typical correction in the middle of a bullish market.

Olszewicz underlined the potential effects of this technical formation by saying, “Normally, rising wedges resolve the downtrend.”

The rising wedge pattern is characterized by upward sloping trend lines that connect successive highs and lows, eventually converging towards a single point known as the top.

This convergence indicates a gradual weakening of bullish momentum and usually results in a break below the lower trend line. Such a breakout would typically trigger a bearish phase, causing prices to fall further.

In addition to the rising wedge formation, analysts also point to other technical indicators that point to a potential decline in Bitcoin price.

The 10-day rate of change, which measures the speed of price movements over a 10-day period, differs from rising prices, indicating a loss of upward momentum.

This divergence is often seen as a harbinger of price pullbacks, and historical data shows that significant corrections of 20% or more have occurred in previous bull markets, such as in 2017 and 2020-2021.

*This is not investment advice.