bitcoin BTC
Bitcoin enthusiasts had a great weekend as the price reached a new milestone, trading close to $62,000. However, just like that, as the price of Bitcoin often does, a correction started once Monday came on some bearish headlines for the cryptocurrency market. What is interesting is that the move higher to a new all-time high follows the same path as before, namely it comes over the weekend, on little or no liquidity.
The market retraced from the highs on news that India is planning a law that will ban cryptocurrency trading in the country. However, the Bitcoin price remains bid as more and more institutional investors and public companies seek exposure to the “digital gold”.
The technical perspective remains constructive, with one caveat – the price to remain above the lower edge of the rising wedge pattern. Should it break below, it signals a major reversal pattern, with the potential of a sharp correction ahead.
Bears may want to wait for a break and hold below the rising trendline. On such a move, the ideal setup needs a stop at the top and a take profit that exceeds twice the distance to the stop. On the other hand, if the market holds the series of higher lows, a new move to the highs is possible.
