All Eyes Now on Bitcoin as Bearish Wedge Comes Into Play

The crypto market displays a bearish movement as leading cryptocurrencies take a dip.
Bitcoin’s Rising Wedge pattern has come into play, which is also reflected by the RSI.
Meanwhile, US President Joe Biden has signed the IRA into law.

The crypto market’s supposed rally is now treading on thin ice, as primary cryptocurrencies Bitcoin (BTC) and Ethereum (ETH) fail to maintain their key support areas.

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For instance, after failing to establish support at $25,000, Bitcoin is now trading at $23,383.19. Meanwhile, Ethereum is changing hands at $1,833.78, according to CoinGecko.

BTC/USDT 1-day chart (source: TradingView)

As seen on the chart above, BTC price has formed the Rising Wedge pattern, a bearish indicator. After three consecutive red candlesticks, BTC price has fallen below the rising support line, confirming that the Rising Wedge has now come into play, at least in the short-term scenario.

The Relative Strength Index (RSI) has also reflected the same sentiment, as the price movement today has finally broken the uptrend which started in June.

BTC RSI (source: TradingView)

Within the crypto trading community, many are convinced that BTC and the greater crypto market will have one last dump before the sentiment returns to bullish. One of the key events that these traders hope to help the crypto market begin its rally is Ethereum’s long-awaited transition into Proof of Stake (PoS).

Fundamental analysis-wise, US President Joe Biden has signed the Inflation Reduction Act (IRA) into law today. This law aims to improve the climate preservation and healthcare efforts of the US, alongside increasing corporate tax.

Some people believe that Bitcoin will be targeted by the IRA, given that bitcoin mining consumes a considerable amount of energy. What is more, there are bitcoin mining firms that operate in the US.

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Jesus Dawal

Jesus Dawal Jr covers news related to the crypto space in Asia and in Australia, although he follows the latest events in the US and Europe as well. He is most interested in the blockchain gaming and regulation aspects of the industry.