This week has been as eventful, if not more than other weeks. On one hand, Tornado Cash got banned in the states after allegedly laundering over $7 billion since its inception, while on the other, Nepal and Australia are joining the race for CBDC adoption. Bitcoin is waiting for the right catalyst to either push it up or down.
Let’s look at the most likely scenario.
Previous Analysis
Last week on Bitcoin price analysis, the asset was dangerously close to breaking down from the rising wedge. All that it needed was a nudge from the right (or wrong) kind of news. But alas! The news of Babel Finance’s massive $280 million loss did little to deter the king of crypto. The consequence is that BTC rose throughout the week to touch a high of $24,921.
Bitcoin Price Next Week
While this is most unexpected, Bitcoin is eventually fated to drop down out of the rising wedge. This is how most (68%) of rising wedges play out. However, before then Bitcoin can have a mini run over the next four weeks before crashing down to $17,367.
Bitcoin is still trending above the 21-day moving average, a good sign for most buyers, but it is dangerously close and can shift below this moving average anytime. The target for the four week mini-run is $28,677, which is +19.66% from the current price of $24,014. Bitcoin just delayed the inevitable, even though a 32% chance of not crashing still exists.
Conclusion
The bullish and bearish scenarios for Bitcoin for the coming weeks seems rather less volatile. Traders can make some good profit by cornering the incoming mini pump, and shorting BTC when it reaches the $28k region. However, it good to note that fundamentals (news) can break this analysis at any time and hence, it is advisabe to keep your ears and eyes open.
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