Is The Bitcoin Crash Over? Here's What Technical Analysts Say

Bitcoin's BTC/USD recent price downturn has technical analysts wondering about how feasible predicting future price action based on chart pattern is.

What happened: Crypto trader Matt Charts stressed the steep decline, saying there were “multiple warning signs that a potential down move was lurking." A surge in Bitcoin's open interest to unprecedented levels contributed to the breakdown. Coinglass data shows Bitcoin open interest at $27.3 billion, a 3.5% increase in past 24 hours.

Also Read: Bitwise CIO Matt Hougan: Bitcoin Sell-Off Is A Buying Opportunity

Matt charts noted that it is easy to blame macro factors but it is important to find ways to be prepared for adverse price action.

Another analyst observed a “descending broadening wedge,” a pattern that statistically tends to break upward, during this crash. However, they note that bearish predictions persist, suggesting the market may now be overly pessimistic.

The analyst comes to the following conclusions:

1. Accurately predicting Bitcoin’s price movements is difficult.
2. It is important to be flexible in technical analysis.
3. One should not become too attached to specific chart patterns and consider broader market factors beyond technical indicators.

What’s Next: The influence of Bitcoin as an institutional asset class is expected to be thoroughly explored at Benzinga’s upcoming Future of Digital Assets event on Nov. 19.

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• Trump Says Government Shouldn’t Be Selling Bitcoin: ‘Crypto Is Like AI, If We Don’t Build It, China Will’

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