Bitcoin Price Moves Sideways in Descending Wedge Pattern

The Bitcoin price is currently in a sideways movement and is forming a descending wedge pattern on the lower timeframes. At the time of writing, the price stands at $62.6K, an increase of 0.5% over the past 24 hours. Analyst DaanCrypto points out that traders should be patient and wait for an actual confirmation of a breakout before taking positions.

Bitcoin is available at OKX and Bybit.

Descending wedge above strong support zone

On the 4-hour chart, DaanCrypto sees Bitcoin forming a classic descending wedge pattern. This is happening on top of a strong support zone on the higher timeframes, with the major $60.000 level and the weekly 200-day moving average (200MA) just below it. The Fibonacci 0.618 retracement is at $62.2K and thus also forms an important reference in the current price area.

The larger trend, however, is still downward. DaanCrypto states that a descending wedge can be a bullish pattern, but you must wait until the structure truly breaks with corresponding confirmation. Those who pre-position now hoping for an upward move run the risk of being stopped out in the volatile, sideways price action.

$60.000 as crucial turning point

If Bitcoin loses the current support zone and drops back towards $60K, DaanCrypto sees that as a signal for a further downward move within the macro downtrend. The $59.9K level is visible as a horizontal support line on the chart, and a break below that would send a clear bearish signal.

The analyst indicates that the Bitcoin price currently does not invite active trading. According to him, the altcoin market has offered more trading opportunities in recent weeks, because more volatility is seen there. Patience is the keyword: wait for a real breakout from the wedge pattern before considering a position.