Bitcoin (BTC) is taking a dump! Will the exchange rate recover soon? The price rose significantly in recent months, but today it is dipping below the $36,000 mark.
Bitcoin did not move as expected today. Since the price broke out to the upside after its low in recent days, it now seems that the price did not get enough volume to catch up.
On the 5-minute chart below, we chart the current decline. We see that the price has broken out of the falling wedge at the bottom.
Although a falling wedge is originally a bullish sign, it also indicates that nothing is certain in this volatile market. The picture shows a rise out of the falling wedge and then a fall.
Which levels are important to watch now?
A break-out from a falling wedge does not automatically mean that the price will immediately turn into a long-term downtrend. What we have to watch for at the moment is a rise back up towards the wedge.
If the price from the bottom (the point where it is currently moving) manages to get back into the wedge, then we can expect a rise to the top of that same wedge.
This phenomenon is called the „channel in and out V technique“. The price makes a V pattern and then rises back into the channel after which it immediately continues to rise towards the top.
On the above shown photo you’ll see that when the price rises back into the channel it makes a V shape.
If the price does this, it may continue to rise towards the top of the wedge at $39,300, a 9.7% increase at the time of writing ($36,115).
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Bearish scenario for BTC
It is also possible that the price fails to rise back into the wedge and instead finds resistance at the bottom of the channel (as shown in the picture below).
If the price gets a pullback to the wedge, but encounters resistance here, it may drop towards the underlying key level at $32,800.
So for now, it is mainly interesting to see how the price will move as it comes back towards the channel.
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