Following the recent correction, Bitcoin has been forming a broadening falling wedge, which has historically served as a final partial decline before taking off to retest highs. If Bitcoin price can reclaim the $40,000 market, the bull market will be back on with even more momentum than before.
Bitcoin’s broadening falling wedge. Source: Crypto Zombie
In the last two months, Bitcoin has been trading below the record high at $69,000 set in November 2021. Consequently, the asset wiped out over 50% of its profits and at some point plunged below its 50-week exponential moving average.
By press time, Bitcoin was trading at $38,100, making gains of almost 5% in the last 24 hours.
Bitcoin 7-day price chart. Source: CoinMarketCap
$30,000 remains Bitcoin support level
Amid the drop, Bitcoin has found a major support level at the $30,000 mark. Since last January, the price has been capping the cryptocurrency’s downside attempts. Worth mentioning is that the level acted as a critical point for attracting interest in the asset.
Following the crash, bears have been unable to push the price per BTC any lower than $30,000, while bulls have been equally as weak, causing Bitcoin to form a potential broadening falling wedge.
If Bitcoin can reclaim the $40,000 mark, the bull market will likely be back with more momentum than before.
Based on the point where Bitcoin began forming the latest broadening falling wedge, the bearish and bullish trajectory could culminate in Bitcoin potentially trading at around the $52,000 mark.
Worth mentioning is that if the bullish reversal is attained, it will be the critical test of whether Bitcoin is in a bear market or not.
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