Before I start my technical analysis, let me just put it out there, I am still incredibly bullish on Bitcoin, based on strong fundamentals and the fact that it just broke the strong resistance point at $50k, also the huge trendline (resistance level) that got broken too last week, Bitcoin price has been up 15.7% since last week and just hit $57k this morning and started retracing.
But my analysis is going to be on the two possible scenario that could play out, has Bitcoin just formed a huge rising wedge pattern, if you look at the chart below, I extend the resistant part of the raising wedge down to October last year, you can see that the resistance level has acted as support before in October 2020, which makes it a very important point to look out for, because if price breaks above it it going pump huge to $58k resistance level, once it breaks that $58k level, price will head for the psychological resistance level at the current ATH at $64k.
But on the other hand, a rising wedge is a bearish pattern, which is why i am putting it into consideration, which means if the price should break below the support part of the raising wedge, it will mean that price will go down and the target will be $30k, which I think is highly unlikely to happen, because we are still in an uptrend, Bitcoin is still making higher highs and higher lows, I don't know when exactly the big break is going to happen but I expect price to hit $60k between now and December.
But before the huge move to the upside happens, am expecting price to up a bit to $58k level and then retest the $53k level or at worst retest $48k to $46k level before price start pumping back up.
