Bitcoin — Drop Incoming?

Bitcoin has been trading in a wedge since its recovery from the latest sell-off. The chart formation is considered to be a bearish continuation pattern. Moreover, a breakout attempt to the top was rejected on Thursday.

Currently, Bitcoin trades sideways on the 4-hour chart and is about to reach the bottom of the pennant shortly. A break of the bottom trend line will likely lead to another drop, with a first target at 57k.

However, it is important to mention that pennant patterns have a rather low success rate to play out! And given the bullish momentum, there's a good chance that Bitcoin doesn't drop.

Nevertheless, traders should closely monitor the lower trend line to be prepared in case of a drop.