BTC’s Price Exits Short-Term Bullish Chart Pattern; What’s Next?

The global crypto market cap has risen 0.17% over the last 24 hours according to the crypto market tracking website, CoinMarketCap. At press time, the global crypto market cap stands at approximately $812.81 billion. The crypto market leader has made a small contribution to the increased crypto market cap, as its price has risen 0.07% over the last 24 hours.

The price of Bitcoin (BTC) now trades at $16,882.56, which is also 0.59% up over the last 7 days. As a result of the slight price increase, BTC’s market cap now stands at $324,892,243,047. This ranks it well above Ethereum (ETH), which has a market cap of approximately $149,695,046,047.

Daily chart for BTC/USDT (Source: CoinMarketCap)

Price action for BTC has entered into an ascending triangle chart pattern over the last 7 days. Although this was a bullish chart pattern, the setup failed to play out as BTC’s price has broken out of the pattern today.

BTC’s price is now being squeezed as the 9-day and 20-day EMA lines converge on each other. The next chart pattern that investors and traders need to keep an eye on is the medium-term descending triangle chart pattern that links the highs at $21,365.27 on November 6, 2022, and $18,387.95 on December 14, 2022.

This longer-term bearish chart pattern may play out in the next 3-4 days, which will result in a decline in BTC’s price. A downward move will see BTC’s price drop toward the next support at $16,693.96. If this support level fails to hold, then the next target will be $16,410.11.

The bearish thesis will be confirmed by the daily RSI line crossing below the daily RSI SMA line in the next 3-4 days.

Disclaimer: The views and opinions, as well as all the information shared in this price analysis, are published in good faith. Readers must do their own research and due diligence. Any action taken by the reader is strictly at their own risk. Coin Edition and its affiliates will not be held liable for any direct or indirect damage or loss.

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