Bitcoin price corrected from the highs as Coinbase, the first crypto exchange to be listed publicly, made its debut in New York. Coinbase ended up the day 15% lower and so has put pressure on the price of Bitcoin as well. However, Bitcoin remains close to all-time highs, as investors see the listing of Coinbase as yet another sign of increased adoption of the crypto market.
The $60k level turned out to have a meaningful significance for Bitcoin. On the one hand, it is the level where the market hesitated a month and a half. On the other hand, by making only marginal new highs, Bitcoin formed a rising wedge pattern.
But rising wedges are not only reversal patterns – they can act as continuation patterns too. A continuation pattern appears when the rising wedge acts as a running triangle in a complex, bullish correction as suggested by the Elliott Waves Theory. By the time the price breaks higher, the move that follows is usually the extended third wave in a classic impulsive structure.
On the other hand, a move below the lower edge of the pattern emphasized the reversal pattern.
Bitcoin Price Technical Analysis
Both bulls and bears should wait for a breakout either above or below the two trendlines of the rising wedge. On such a move, the plan involves going long or short, placing a stop-loss order at the opposite edge, and aiming for a risk-reward ratio of 1:2 minimum.