This explanation of the rising wedge is perfect for people in the future, who can come back and check whether it was the bearish signal that many say it is. Bitcoin is about to come close to it’s last all time high of $64,918.95 and it’s looks like a rising wedge has formed as it reaches this point.
Above is a screenshot of the chart on my binance account and is a great example of a rising wedge. The pattern is quite clear in the screenshot. You can see a clear rising wedge forming in technical analysis, it looks like a triangle is slowly forming at approximately 2 o’clock. All examples that I’ve seen online of the rising wedge look the same as this.
Is The Rising Wedge a Bullish Signal Sometimes?
A rising wedge in technical analysis is mostly a bearish signal, which means that once it reaches the tip of the triangle, it will usually have a correction downwards. This is just what I’ve noticed, there also seems to be a previous high reached in the charts recent past, when a rising wedge appears. This has happened again with bitcoin in this case.
Well this is what we will find out in the next few days I believe. The rising wedge seems to be converging at a new all time high for bitcoin right now, perhaps over 65 to 67, but only time will tell.
Things I’ve Noticed
Since my last post, bitcoin has jumped from 40k to 60k, which is the opposite of what I predicted last post. The last thing I want to do is have a pre existing bias towards one way or the other, we must be objective in our analysis. So, I’ll be looking closely at how bitcoin handles this new top, whether it’s truly is going to sky rocket or return to it’s usual patterns.
The world is currently in turmoil at the moment, many people and countries around the world are suffering. The money supply is being expanded at unprecedented levels, which is driving people towards safe havens. Bitcoin is one of those safe havens, gold on the other hand is being manipulated badly, gold has hardly budged, which means that gold in my opinion will never be a safe storage of wealth. Well, as long as who’s manipulating the price is still in charge anyway.
Almost everyone I speak to has bought Bitcoin, which is a great sign that bitcoin is in a bubble like the last 3 times. Though the turmoil in the world is giving these people no where safe to go, other than bitcoin. So, bitcoin could continue to go up until governments stop these lockdowns and allow people to move freely again. Perhaps we’ll know for sure in the next few days
Here are some other technical analysis articles I’ve made for you:
