A crypto analyst believes Bitcoin is poised to surge past $100,000, based on a specific chart pattern. Let’s break it down.
The Falling Wedge: A Bullish Sign?
The analyst, using a 4-hour chart, spotted a “falling wedge” pattern. In technical analysis, this is often a bullish indicator. This prediction comes after dismissing an earlier “head-and-shoulders” pattern, which typically suggests a price drop. The analyst called the head-and-shoulders pattern “fake,” meaning it didn’t play out as initially predicted. This earlier pattern had raised fears of Bitcoin falling below $90,000.
The falling wedge, forming since December 17th (when Bitcoin hit its all-time high of $108,135), is characterized by lower highs and lower lows – classic signs of this bullish pattern. Bitcoin’s recent price action shows it’s nearing the upper trendline of this wedge. A breakout above this line could send Bitcoin soaring past the $100,000 mark.
Bitcoin’s Recent Price Action
Bitcoin saw a mini-rally after bouncing back from support around $90,800 on January 13th. This upward movement, a 6.8% increase over 48 hours, followed a weekend dip that threatened to push Bitcoin below $90,000. Currently trading around $97,000, it’s only about 3% away from breaking through the falling wedge’s upper trendline.
A Note of Caution
While things look positive, the analyst notes a slowdown in buying activity. A significant increase in investor interest might not happen until late January or early February. So, while the prediction is bullish, it’s not a guarantee, and the timing might be uncertain.
