As in the case of a rising wedge in a uptrend, it is characterised by shrinking prices that are confined within two lines coming together to form a pattern. Bitcoin could face correction if the global sentiment towards the greenback and the US economy improves. A rising wedge in a downtrend is a temporary price movement in the opposite direction (market retracement). The dollar expects to gain strength from that. A rising wedge in a downtrend is a temporary price movement in the opposite direction (market retracement). Meanwhile, the European Central Bank will likely boost its easing programs, which, in turn, would weaken the euro. The rising wedge pattern can sometimes be a continuation pattern as well but thats a rare occasion. When the price moves upward, the pivot highs and lows converge toward a single. Strategists believe that the policy normalization could appear by the beginning of the following year. The rising wedge chart pattern is a recognisable price move that’s formed when a market consolidates between two converging support and resistance lines. A wedge pattern is a triangular continuation pattern that forms in all assets such as currencies, commodities, and stocks. Rising Wedge Patterns A rising wedge is a technical indicator indicating a reversal pattern typical in bear markets. In its recent report, Bank of America noted that the US dollar could post growth in 2021 as the Federal Reserve hints to reduce its ultra-dovish stance by tapering its $120bn per month asset purchase program. Incorporating the rising wedge pattern into your trading strategy could help your trading. The ascending wedge is a reliable, accurate pattern, and if used correctly, gives you an edge in trading. “Not sure how many corrections would be along the way, but the on-chain indicator says there are enough stablecoins in exchanges compared to Bitcoins to get another leg up.” Macro Risks for BitcoinĪs traders and investors build up their bitcoin positions, they expect to face a wave of risks from the US economy’s potential to undergo a better-than-expected recovery. According to multi-year testing, the rising wedge pattern has a solid 81 success rate in bull markets with an average potential profit of +38.
“If you’re a long-term investor, now is the time to buy BTC,” wrote Ki-Young Ju, the CEO of CryptoQuant.
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