$BTC Price Forecast: Rising Wedge Spells More Downside for BTC Price - CoinGape Analytics

BTC’s price recently rebounded from its fall and started making higher highs and higher lows—clear signs of an uptrend. However, zooming out, the asset seems to form a rising wedge, which usually breaks out to the downside.

The Bitcoin price action is trending below the 21-day, 50-day, and 200-day simple moving averages. Price action recently touched the 50-day SMA and was rejected. The BTC price is expected to drop lower by 3.6% before attempting a 6.5% rally to the top trend line.

The current major support level for Bitcoin is around $54,000. A break below this could cause the asset to drop to $51,500. However, if the price breaks above the rising wedge (although rare), Bitcoin may experience an explosive move to the upside, breaking past the $60,000 resistance level.

Bitcoin transaction fees have dropped to a four-year low. As of July 7, 2024, the average fee for a Bitcoin transaction was $38.69, last observed during the height of the COVID-19 pandemic. The decreasing transaction costs may be attributed to reducing demand for block space.