The ongoing crypto market crash could get worse in recent years as Bitcoin prices flash at least three dangerous patterns on the weekly time frame chart.
summary
- Bitcoin prices formed a wedge pattern that rose on the weekly chart.
- It also marked crash drops to form a bearish divergence pattern.
- Such crashes will lead to crashes in the crypto market.
Bitcoin price charts form a dangerous pattern
The weekly time frame chart shows that Bitcoin (BTC) prices have formed a very bearish chart pattern.
First, we formed a bearish divergence pattern. The relative strength index has formed a descending channel since January last year. This is a sign of a bearish divergence pattern.
Similarly, the MACD indicator has moved downwards since December last year, with the two lines forming a bearish crossover pattern. In particular, the histogram bar is below the neutral point this month.
The fantastic oscillator has been falling since December. Therefore, RSI, MACD, and AO show that Bitcoin prices have formed a bearish divergence pattern.
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Worse, BTC prices have formed a wedge pattern that has risen since last July. The bottom of that connects the lowest swings of the year in July, April and August last year. The top surface connects the best swings in December, July and August.
The two lines of the wedge are currently approaching confluence levels, indicating a strong bearish breakdown in the short term. If this happens, the coin could move below the psychological level of $100,000 and move to support at the lowest level in April of $74,720.
The price crash of Bitcoin is very bearish for the broader crypto market as its performance usually affects other altcoins.
BT Price Chart | Source: crypto.news
The crypto market has some bullish catalysts
Still, the crypto market has a bullish catalyst that could boost it in the coming months.
The first is that the Federal Reserve has begun cutting interest rates, and the odds support the theory that the cutting cycle is just beginning. The dot plot pointed to two more cuts this year, but analysts hope that the central bank will cut further in 2026, especially if Donald Trump replaces Jerome Powell with the Fed chairman.
Furthermore, historical data shows that the fourth quarter is usually best suited to the crypto market. The average Bitcoin price for the fourth quarter since 2013 was around 85%.
Meanwhile, the Securities and Exchange Commission is expected to begin approval of the Altcoin ETF in October, with recent data showing there is a robust demand for these assets from investors. With an expense ratio of 0.75%, Doje ETF has already achieved assets of $3.9 million, while XRPR has $10.9 million.
Therefore, the main legislation 33 ETFs could result in more influx due to their lower cost ratios and because their sponsors are more prominent companies such as Franklin Templeton and Invesco.
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