• Bitcoin price just confirmed a falling wedge pattern on the daily chart.

  • Falling wedges are known to have a 62% probability of breaking to the upside.

  • The price of Bitcoin today is $66,124, which represents a 0.2% increase in the past 24 hours and a 4.9% increase in the past 7 days.

  • U.S CPI data fell to 3.4%, which means economic stability, a good indicator for Bitcoin and cryptocurrencies.

Bitcoin Statistics

  • Bitcoin Market Cap Dominance: 52.1% ⬆

  • Bitcoin Market Cap: $1.297 trillion ⬆

  • Total Supply: 21 million

  • Circulating supply: 19.699 million ⬆

Bitcoin marketcap dominance increased to 52.1%, coinciding with red days for the majority of the altcoins. This means investors are dumping their altcoin bags for BTC, but this could change soon as the bull market fully matures.

Previous Bitcoin Price Analysis

BTCUSDT Chart by Tradingview

Last week, Bitcoin price was firmly below the 50-day simple moving average (SMA) showing signs of weakness after failing to break above this indicator. 

We expected the price to fall lower on account of this resistance. The 200-day SMA would provide the heaviest support at $52,000.

However, fundamental news this week slightly changed the trajectory of Bitcoin’s price action and for the first time in 3 weeks, the price closed above the 50-day SMA.

U.S. CPI data came in at 3.4%, which is lower than last month’s record. This signals a slowdown in the rate of inflation and consequently forecasts a stabilizing economy.

Following this news, the Dow Jones Industrial Average Index (DOW) crossed the 40,000 mark for the first time ever. Bitcoin price also showed some strength on this news, surgeon 8%.

Falling Wedge Signals A Possible Upside In a Few Weeks

BTCUSDT Chart by Tradingview

Bitcoin price is now firmly in a falling wedge, with the 50-day SMA lodged in the middle of the chart pattern.

We expect the price of the asset to continue falling in the short term and in a tight formation until the $52,000 mark. This could happen in the remaining days of May and possibly early June. 

As usual, all technical analysis is usually correct assuming all factors remain constant. However, if there was to be market-disrupting news, whether positive or negative, it would invalidate most TAs.

On the upper side, when Bitcoin breaks out of the falling wedge, there is a weak overhead resistance at $67,500 and $73,794 (the current all-time high). After that BTC can surge to highs of $82,924.

For the coming week, we expect  Bitcoin to correct lower in a bid to fill out the falling wedge. Hence, traders who short Bitcoin can make some profits this coming week.

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