Bitcoin (BTC) is in the process of breaking out from a descending wedge pattern, which has been in place since April 18. This could be the catalyst for a significant upward movement. Bitcoin has been decreasing since reaching a local high of $48,189 on March 28. In the period since March 11, the downward movement became very gradual and choppy. Since then, BTC has fallen by less than 3%.
Additionally, BTC has bounced at the $38,000 horizontal support area. The area has been acting as a strong horizontal support level since the beginning of March.
Today, BTC is in the process of creating a bullish engulfing candlestick. This bullish candlestick pattern would be confirmed with a close above $38,525. The creation of this bullish pattern would align with the bullish divergence that has been developing in the RSI.
The 6-hour timeframe shows BTC trading within a descending wedge since April 18. The wedge is often viewed as a bullish pattern that leads to breakouts most of the time.
