Bitcoin price recovered some of the lost ground as it formed a double bottom in the 48,000 area. The market seems strong at the moment, as investors bought the dip, but the technical picture remains damaged. A rising wedge pattern did break lower earlier in the month, a bearish sign. Moreover, on its way lower, Bitcoin also broke the higher lows series, another sign of troubles for bulls.
The bounce seen in the Bitcoin price also attracted renewed interest in other altcoins. As such, Ethereum reversed its downtrend, too, led by the sharp rise in Bitcoin.
The week ahead is interesting for Bitcoin because this is the last trading week of the month. As more institutional investors piled into the cryptocurrency market lately, the end of the month flows may also affect the main coins.
Bitcoin Technical Analysis
After a rising wedge, the market typically retests the lower trendline. Bitcoin did so before heading South and breaking the series of higher lows.
While the bounce gives hope to bulls, bears are likely to keep pushing for new lows now that conditions for a bear market do exist. After all, Bitcoin is down more than 20% from the highs. Bears may want to stay short with a stop at the previous lower high and targeting a risk-reward ratio bigger than 1:2.