With Bitcoin striving to put the current market downturn behind it, historical data suggests that the asset is on the verge of completing the development of a positive momentum.
According to statistics released by cryptocurrency on-chain analytical platform Sentiment, Bitcoin is currently mimicking the trading pattern seen over the last year, in which the commodity had a boom in trading activity following a dip in value.
Moments of lower trading volume have appealed to bulls, indicating a likely upward reversal despite less interest among ordinary investors.
Bitcoin’s four-hour chart has created an expanding falling wedge, according to prominent crypto YouTuber Crypto Zombie, which sometimes produces a final half collapse before shooting off to retest highs with $40,000 in goal. If the level is broken, the bull market will almost certainly resume with considerably greater vigor than previously.
Crypto Zombie observes that similar conditions in the past have resulted in a break out, with Bitcoin price presently in a spreading bottom wedge. Based on the moment at which Bitcoin began forming the most recent expanding falling wedge, the bearish and bullish paths might lead to Bitcoin trading at roughly $52,000.
Bitcoin has hit a crucial support level near the $30,000 mark in the midst of the collapse.
The price has been stifling the cryptocurrency’s attempts to fall since January.
It’s worth noting that the level was a crucial criterion for drawing interest in the item.
Bitcoin has formed a possible expanding falling wedge as a result of the decline, with bears failing to drive the price per BTC below $30,000 and bulls similarly feeble.
If Bitcoin is able to recapture the $40,000 barrier, the bull market will most certainly regain its pace.
It’s worth noting that if the bullish reversal happens, it’ll be the deciding factor in determining whether or not Bitcoin is in a bear market.