While the cryptocurrency market was risk-averse on Friday, the Bitcoin price continued its sideways movements over the weekend. Analysts are discussing the technical levels that the wedge formation on the BTC chart will lead to next week.
Crypto Rover predicts high volatility for Bitcoin price over the weekend
A parallel wedge is forming on BTC’s 3-day chart. The wedge pattern is characterized by a converging pair of support and resistance levels and a narrowing price channel at one point to the right. When the price crosses the resistance or support and forms a new trend, the pattern is broken. However, it should be noted that this potential breakout could offer a short-term relief rather than a rally.
cryptocoin.comIn this article, we have included analyst Crypto Rover’s expectations from the wedge formation.
#Bitcoin Weekend breakout imminent! 👇 pic.twitter.com/gByXz2okkP
— Crypto Rover (@rovercrc) May 20, 2023
Carl from the Moon detects an important Bitcoin pattern
The popular crypto trader with 1.3 million followers shared a pattern where the BTC price could exceed $29,000. Carl sees a symmetrical triangle pattern on the Bitcoin chart that he says may break soon.
The crypto analyst gives the Bitcoin price target as $25,000 if the price drops further or $29k if the price moves higher.
CHART: #Bitcoin Symmetrical Triangle can break soon. pic.twitter.com/GRdlbNURw3
— Carl From The Moon (@TheMoonCarl) May 19, 2023
Bluntz expects BTC to start a big bullish run
Another crypto analyst, Bluntz, discussed the ripple failure patterns (SFPS) that form on BTC’s daily charts during a downtrend. The analyst predicts that Bitcoin is about to overcome important resistance levels and will experience a major bullish run.
Bluntz told his Twitter followers, “I don’t think it’s short time anymore. That was weeks ago,” he advises.
solid sfps forming here on daily for #btc and most majors.
i dont think nows the time to be short, that was weeks ago.
i think we bounce here but ill be keeping a very close eye ont he next resistances which for me are 28.3k and 29.5k pic.twitter.com/5GEhPMLhWE
— Bluntz (@Bluntz_Capital) May 17, 2023
The analyst is optimistic about BTC’s potential. However, it still closely monitors the next resistance levels that will appear in the future. For Bluntz, those levels include $28,300 and $29,500.
BTC supply on exchanges is at rock bottom
On the other hand, data from Santiment reveals a different trend among crypto investors. Recently, investors have been quickly withdrawing their money from cryptocurrency exchanges. Santiment reports that the circulating supply of BTC on exchanges is currently at 5.7%. This was the lowest level since December 2017, when BTC first reached $20,000.
Similarly, the circulating supply of ETH is 10.1%, marking the bottom since its inception in 2015. This decline was linked to ETH holders who want to make long-term profits, choosing to stake rather than keep their cryptocurrencies on exchanges.
📉👌 #Bitcoin & #Ethereum both continue to quietly see more and more of their existing supplies move into self custody. Though not a perfect indicator, declining coins on exchanges generally hint at future bull runs, given enough time playing out. https://t.co/N1Icon7U19 pic.twitter.com/f5YXzqmZNf
— Santiment (@santimentfeed) May 20, 2023
If the expected breakout occurs and moves in the positive direction, BTC will again head above $27,000. Conversely, if the price breaks below the next support level at $26,300, $25,000 will follow.
Meanwhile, data from Coinglass revealed that the crypto market has seen over $25 million BTC long liquidations and over $6.39 million short liquidations in the past 24 hours.
How is the Bitcoin price?
BTC is currently moving sideways on a daily and weekly basis. The bulls are busy holding the $27,000 level as support. The leading crypto reached $27,500 on Thursday and later dropped to $26,400.
