Technical indicators seem to point towards bullish momentum for Bitcoin moving forward. It is currently forming an enticing wedge on the daily.
People tend to be skeptical of technical analysis, but the wedge formation is a classic indicator that is almost always proven right. Bitcoin is in one of those bullish wedges now, and this momentum reinforces that it may break upwards once the triangle completes in the coming months.
Bitcoin’s Potential Rise
As trader Mati Greenspan (@MatiGreenspan) writes:
Nice wedge on BTC. Quite 🐂ish pattern.
Lines one charts don't predict the future. pic.twitter.com/Mqb6bgdND2
— Mati Greenspan (@MatiGreenspan) August 19, 2019
Keep in mind that this bullish wedge will likely take two months to play out to completion if it even lasts that long. However, this is a clear sign that the perfect storm is brewing for Bitcoin in the realm of technical analysis for the coming months.
On shorter timeframes, though, the situation seems uncertain. With multiple time frames, Bitcoin appears to be operating on a rising wedge, which would indicate a little upside before a short-term correction. On the 3H timeframe and RSI, indicators seem to confirm this as accurate.
Feel this move may be short lived
Rising wedge on multiple time frames including 3hr RSI
Trade safe loveys pic.twitter.com/IqggXNVRND
— The Cryptomist (@TheCryptomist) August 19, 2019
However, there seems to be little to panic about overall. Although we may see a slight short-term downtrend, the momentum on the daily altogether has remained positive. Hopefully, Bitcoin will complete the wedge on the daily and break upwards in the coming months if positive sentiments remain. Bakkt requiring the actual purchase of Bitcoin is a good sign, for example.
Will Bitcoin Stay Positive?
With Bitcoin’s halving set to occur for May 2020, the perfect storm seems to be brewing for the leading cryptocurrency. The only real hidden variable that could throw a wrench in this plan is a possible recession in 2020/21. Many economists have already been flashing warning signs and, given that Bitcoin has never experienced a recession before, the crypto-market could get ugly. Some analysts maintain that Bitcoin could operate as a possible hedge during a general economic downturn, but this theory has yet to be tested.
For now, we have reason to be optimistic about the coming months. We can expect some slight short-term pain, though, based on rising RSI and a bearish rising wedge formation on the hourly charts.
Are you optimistic about Bitcoin’s price in the coming months? Let us know your thoughts in the comments down below.
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