Bitcoin is giving a reversal signal with the Ascending Wedge Pattern.

Recently observed movements in the price of Bitcoin (BTC) are attracting the attention of investors. Bitcoin, which has declined from the $126,000 level to the $106,000 level, is reportedly creating a potential reversal signal according to technical analysis. Analysts suggest that after the sharp correction seen in recent weeks, Bitcoin may be preparing for a new wave of upward movement.

CoinDesk analyst and technical expert Omkar Godbole states that Bitcoin's decline has turned into a classic "rising wedge" formation. This formation often appears at points where downtrends come to an end and prices begin to rise again. The rising wedge indicates that selling pressure is decreasing and prices are tightening into a narrow range. It is noted that the upper boundary of this formation on Bitcoin's current chart is located in the $106,000 - $107,000 band.

According to the analyst, if a breakout occurs above this level, the likelihood of the price returning to the $126,000 level and subsequently reaching new peaks will increase. However, experts emphasize that it is critically important for Bitcoin to remain above the $100,000 level for this scenario to be valid. If the Bitcoin price consistently falls below the $100,000 level, the market may enter a correction process again, and prices could pull back toward the next support level around $90,000.

Additionally, the increasing demand for spot markets and spot Bitcoin ETFs traded in the United States has been observed to enhance the chances of an upward breakout of this formation. Historically, rising wedge formations have generally provided positive outcomes for investors, but it is emphasized that caution should be exercised and volume and price movements should be monitored closely.