Beware of Bitcoin's 'Rising Wedge,' Chart Analyst Says

"Normally rising wedges resolve bearish," crypto analyst and trader Josh Olszewicz told CoinDesk.

AccessTimeIconMar 14, 2024 at 7:22 a.m. UTC
10 Years of Decentralizing the Future
May 29-31, 2024 - Austin, TexasThe biggest and most established global event for everything crypto, blockchain and Web3.Register Now
  • Bitcoin’s rising wedge pattern suggests potential for price pullback, according to crypto analyst Josh Olszewicz.
  • The cryptocurrency’s 10-day rate of change has decoupled from rising prices.

A key price pattern has emerged on bitcoin’s (BTC) price chart, hinting at a potential pullback ahead.

The cryptocurrency has rallied from $60,000 to new record highs above $70,000 in less than two weeks. The ascent has taken the shape of a “rising wedge,” which is a bearish pattern, according to technical analysis theory.

“Normally rising wedges resolve bearish,” crypto analyst and trader Josh Olszewicz told CoinDesk, explaining a possibility of a typical bull market pullback ahead.

A rising wedge pattern comprises upward-sloping trendlines that connect highs and lows and converge toward a single point known as the apex. The converging nature of trendlines indicates a steady weakening of bullish momentum. Thus, an eventual wedge breakdown, or the move below the trendline connecting lows, represents a bearish development, paving the way for deeper price losses.

Bitcoin's rising wedge pattern suggests a pullback ahead. (TradingView/Josh Olszewicz)
Bitcoin's rising wedge pattern suggests a pullback ahead. (TradingView/Josh Olszewicz) (TradingView/Josh Olszewicz)

Other indicators like the 10-day rate of change, which measures how rapidly prices are surging or falling over 10 days, have decoupled from the rising prices.

The divergence suggests a downside momentum is building and often foreshadows price pullbacks. 20% or more pullbacks were common during the 2017 and 2020-21 bull markets.

However, Olszewicz expects the pullback to be short-lived. “Given the ETF inflows coming in and MicroStrategy’s Saylor continuing to buy more, I think even if prices do retrace after potential wedge breakdown, it will be hard for the bears to keep them under pressure for long,” Olszewicz explained.

The 10-day rate of change has decoupled from rising prices. (TradingView/CoinDesk)
The 10-day rate of change has decoupled from rising prices. (TradingView/CoinDesk) (TradingView/CoinDesk)

Edited by Parikshit Mishra.


Please note that our privacy policy, terms of use, cookies, and do not sell my personal information has been updated.

CoinDesk is an award-winning media outlet that covers the cryptocurrency industry. Its journalists abide by a strict set of editorial policies. In November 2023, CoinDesk was acquired by the Bullish group, owner of Bullish, a regulated, digital assets exchange. The Bullish group is majority-owned by; both companies have interests in a variety of blockchain and digital asset businesses and significant holdings of digital assets, including bitcoin. CoinDesk operates as an independent subsidiary with an editorial committee to protect journalistic independence. CoinDesk employees, including journalists, may receive options in the Bullish group as part of their compensation.

Omkar Godbole

Omkar Godbole is a Co-Managing Editor on CoinDesk's Markets team.

Learn more about Consensus 2024, CoinDesk's longest-running and most influential event that brings together all sides of crypto, blockchain and Web3. Head to to register and buy your pass now.