Bitcoin price is up around 1.2% in the last 24 hours at the time of writing and is trading above $21,400 as the bulls try to rise.
Slight gains on the daily chart consist of six consecutive red candles followed by two small green candles.
However, with the broader market largely unstable, the leading cryptocurrency is still vulnerable to the sell-off that pushed BTC/USD above $25,000 last week.
Chart showing BTCUSD price action and key levels.
Increasing wedge targets: What’s next for BTC?
On Friday, the price of BTC fell nearly 10% as the broader risk assets market sank on news that the US Federal Reserve plans to maintain a hawkish approach despite data pointing to slowing inflation.
The risk aversion sentiment has seen Bitcoin hit its lowest price level in three weeks ($20,760 on Coinbase, the pair is down about 12% this week). Legendary trader Peter Brandt has this to say about BTC price action:
For all practical purposes the target of the rising wedge in Bitcoin $BTC has already been met. That is not a reason per se to be bullish and it does not mean BTC cannot go lower yet pic.twitter.com/fB3sGa9e6o
— Peter Brandt (@PeterLBrandt) August 20, 2022
While pointing to a chart showing a breakout from an ascending wedge, Brandt said that the cryptocurrency is therefore poised for key downside targets.
Some bounce is possible from here if the bulls hold the support, but it is likely to suffer more if the demand reload zone breaks, a scenario that crypto analyst Michael van de Poppe has also highlighted. tweet below.
The last major drop below $20,000 saw BTC/USD drop to lows around $17,600.
