Bitcoin Price Could Hit $38k, But Rising Wedge Poses Risks $20k

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#Bitcoin HTF Chart Analysis

Current Price: $30,700

Technical analysis: Where patterns unfold

1️⃣ TrendLine Breakout: On the 3-day chart, #BTC has followed a significant TrendLine since its bull market high of $69,000. Impressively, Bitcoin recently broke above this TrendLine, which has now become strong support at $22,800. A successful retest was conducted at $19,850, affirming the validity of the breakout.

2️⃣ The Mighty Red Box: Since January 2021, a robust resistance line has hindered Bitcoin's progress. The first attempt to break this line failed, leading to the onset of the bear market in 2022. Currently, Bitcoin is making its second attempt, but caution is advised as rejection at this level remains a possibility. A potential breakout may occur on the third attempt.

The Parallel Channel: Another pattern forming on the high timeframe chart is a rising wedge or parallel channel. If BTC adheres to this channel, we may witness a rise toward $38,000. However, it's crucial to remain cautious, as a breakdown of this channel, also known as a rising wedge, could lead to greater price pain. The support for the rising wedge is currently at $26,000 but may change over time.

Opinion: Based on the chart analysis, it is anticipated that Bitcoin will initially reach the $36,000-$38,000 range. Subsequently, a correction to the $29,000-$30,000 range could occur. However, breaking down the rising wedge or parallel channel would signify a highly bearish scenario, potentially driving the Bitcoin price below $20,000.

Disclaimer: This report is not financial advice. Please conduct your own research before making any investment decisions.

Thank you for your attention.

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