Will the Bitcoin price fool chart readers once again?

Bitcoin price comes into a congestive zone which should resolve in an explosive move.
BTC price has shown its untameable nature in previous congestion zones going against many classic technical analysts' expectations.
Invalidation of the uptrend is a breach below $23,125.

Bitcoin price is notorious for making contrary directional moves in opposition to anticipated trends. Although BTC shows bearish signals in the short term, the possibility of fooling technical analysts remains on the table.

Bitcoin price has proven its untameable nature

Bitcoin price currently trades at $24,187. The peer-to-peer digital currency has been coiling within a consolidative wedge for several weeks. Many traders and analysts reading the pattern are likely considering dissension from the wedge back into $20,000 and potentially an $18,600 landing zone. Although the technicals are plausible and a short entry would be justifiable, traders should remember the nature of the Bitcoin price.

Bitcoin price has fooled some of the best analysts in recent years. In 2020, when Bitcoin traded at $7,000, Twitter was in a frenzy over the technicals. Many analysts argued that Bitcoin could not see a stable bottom on such a bearish-looking candlestick. In 2021, after Bitcoin rallied 350% to $60,000 levels, a retracement price fell to $29,000. Youtube influencers came out of the woodworks calling for a $25,000 token, which never occurred. Bitcoin price rallied back towards $69,000, totally avoiding the world's anticipated target.

BTC/USD 1-Week Chart

Bitcoin price has proven its untameable nature during congestive price zones. Traders should be careful not to miss a move as the wedge unfolding could propel BTC price towards $27,800 in the short term. A second attempt at the $25,800 level could be the catalyst. Traders should keep in mind that invalidation of the uptrend scenario is dependent on $23,150 holding as support.

In the following video, our analysts deep dive into the price action of Bitcoin, analyzing key levels of interest in the market. -FXStreet Team

Share: Cryptos feed

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.