Bitcoin (BTC) Experienced Short-Term Decline, Analyst Warns

Cryptocurrency analyst Josh Olszewicz noted that Bitcoin (BTC) exceeding the $70,000 level coincided with a significant technical pattern

Written by: Sophia Cruz • Thursday, March 14, 2024 • 1 min read

Cryptocurrency analyst Josh Olszewicz noted that Bitcoin (BTC) exceeding the $70,000 level coincided with a significant technical pattern called “the rising wedge”, which suggests a possible retracement in Bitcoin’s price. In addition, he also issued a short-term bearish caution for Bitcoin due to this formation.

Bitcoin (BTC) Experienced Short-Term Decline, Analyst Warns

The Rising Wedge Formation

This technical pattern is characterized by the convergence of upward-sloping trend lines meeting at a single point which usually leads to a bearish outcome in technical analysis. Despite Bitcoin’s sudden surge from $60,000 in under two weeks, Olszewicz anticipates a typical bull market pullback.

Furthermore, Olszewicz explained that the converging trend lines mean a gradual decline in upward momentum, signaling a bearish development and potentially deeper losses. Moreover, indicators like the 10-day rate of change diverging from the increasing prices suggest a downward momentum, often preceding price retractions.

Despite the bearish outlook, MicroStrategy announced another massive step in its crypto investment strategy. MicroStrategy is now launching a proposed fundraising of $500 million in convertible notes, to purchase more Bitcoin. While the primary goal is to acquire more Bitcoin, a portion of the funds may also be allocated for general corporate purposes.

This strategy is a strong indication that MicroStrategy is dedicated to Bitcoin despite its recent price rally and positions. In the last two weeks, MicroStrategy has organized offerings amounting to $1.3 billion including a recently completed $800 million senior convertible note offering which surpassed its initial announcement by $200 million due to increased investor interest that enables them to acquire 12,000 BTC.

At this time of writing, Bitcoin (BTC) is down by 0.70%, trading at $72,935 with a 24-hour trading volume of $44.47 billion.

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ABOUT THE AUTHOR See More

Sophia Cruz

Financial Writer - Asian & European Desks

Sophia is an experienced writer, reporter and newsdesk member, mostly on the financial sectors. For the past 5 years Sophia has covered a wide variety of topics such as the financial markets, economics, technology, fin-tech and trading. Sophia has been a part of the FX Leaders team since 2017 and works on producing valuable content and information for traders of all levels of experience.