Bitcoin is currently the subject of discussion among cryptocurrency investors as the whole market hinges on its movements. BTC has a habit of invalidating technical analysis on most altcoins but when it comes to looking for trend changes and the overall outlook of the market, Bitcoin gives the best indication even if technical analysis on a particular altcoin suggests otherwise. However, it is important to note that BTC itself has invalidated several of its own solid patterns that left most analysts surprised. However, if you have been following BTC for a long time, you would know better than to rely on technical analysis alone when analyzing cryptocurrency movements.
Bitcoin recovered strongly from its previous low of $6,000 as buy orders were hit on several exchanges. This lead to a strong rally initially but it fizzled out as BTC neared the main resistance trend line. It was rejected from there and started to drop heavily against USD on the 1D Chart. However, a lot of positive news have come to light during the past few days and investor sentiments seems to be changing from bearish to bullish but big money is not getting involved yet. Most analysts expected a retest of 6,000 and a double bottom but seeing the swift recovery after the previous fall to $6,000 investors are hesitant to sell. The big picture on the chart indicates an Adam and Eve Pattern which could finally help BTC break out of the wedge and continue towards new highs. If the Adam and Eve Pattern fails to complete, then BTC should be expected to trade within the wedge and it could take more than a month for it to breakout.
The Adam and Eve Pattern seem to be strong though and past results have shown a strong rally after such formations. We also have possibility of an Adam and Eve Pattern on the 4H chart which also forms part of the bigger pattern. This could finally give the bulls enough ammunition to break out of the resistance line. However, it is early to tell if institutional investors will get involved yet. The price could continue to consolidate for a few weeks even after breaking out as the crypto market waits for the big players to get involved. Institutional interest in stronger than ever and big money is waiting on the sidelines preparing to get involved, but for that to happen, there has to be policy and regulation to safeguard investments of these big players. Recent events indicate a move towards massive mainstream adoption which will definitely make the current market cap of cryptocurrencies tiny by comparison as institutions get involved. Most crypto projects that held its ICOs in the early days are close to rolling out their products and starting their services by now. As soon as the market stabilizes, we will see more and more of these companies announce services. Meanwhile, the lightning network has proven to be successful which could finally address issues of speed and cost making Bitcoin more popular than ever.