A rising wedge broke lower over the weekend, sending the price of Bitcoin lower by more than 15% in less than an hour. Such a move triggered a similar reaction on other altcoins, as panic selling took over the market.
Buyers stepped in, and a bounce followed, but one cannot stop wondering when the day will come and there would be no buyers to prop up the prices on a dip? In any case, Bitcoin trades now above $57k after it dropped as low as $52k in a move that scared crypto fans.
The move lower in Bitcoin triggered a run for safety in other markets. For example, the Japanese yen is in strong demand at the start of the trading week, as investors look for safety.
Bitcoin Price Technical Analysis
From a technical perspective, Bitcoin broke a rising wedge and now retests the dynamic resistance. Classic technical analysis tells us that bears would likely step in here and sell short against the highs.
A rising wedge is valued by traders because of the big risk-reward ratios they provide. As such, traders may want to go short with a stop at the highs and target a risk-reward ratio bigger than 1:3.
Bitcoin Price Forecast
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Cryptocurrency exchange with over 150 coins. As of Jan 18, Binance was the world's largest cryptocurrency exchange per volume.