U.Today - Bitcoin, the largest crypto currency by market capitalization, has slowed its decline since U.S. exchange-traded funds for the largest digital asset began trading on Jan. 11 and now faces a critical test if a bottoming signal on its charts is confirmed.

Bitcoin climbed over 4% on Wednesday, reaching a high of $40,527 before trimming its gains to trade at $40,091 at press time.

Given Bitcoin's recent bounce from lows of $38,501 on Jan. 23, Glassnode cofounder "Negentropic" on X wonders if it just bottomed in a "descending wedge with a classical throw-over."

The digital asset markets observed an upswing in speculation leading up to the Bitcoin ETF approvals, with a general sell-the-news event playing out over the following days.

Bitcoin has fallen over 20% from an intraday high of $49,021 when the ETFs went live, as excitement over the products gave way to anxiety about the eventual extent of demand for them.