Bitcoin - BTCUSD
A rising wedge broke lower over the weekend, sending the price of Bitcoin lower by more than 15% in less than an hour. Such a move triggered a similar reaction on other altcoins, as panic selling took over the market.
Buyers stepped in, and a bounce followed, but one cannot stop wondering when the day will come and there would be no buyers to prop up the prices on a dip? In any case, Bitcoin trades now above $57k after it dropped as low as $52k in a move that scared crypto fans.
The move lower in Bitcoin triggered a run for safety in other markets. For example, the Japanese yen is in strong demand at the start of the trading week, as investors look for safety.
From a technical perspective, Bitcoin broke a rising wedge and now retests the dynamic resistance. Classic technical analysis tells us that bears would likely step in here and sell short against the highs.
A rising wedge is valued by traders because of the big risk-reward ratios they provide. As such, traders may want to go short with a stop at the highs and target a risk-reward ratio bigger than 1:3.
