As the technical outlook for the cryptocurrency market sparks renewed debate, a veteran analyst has issued a new warning.
Aksel Kibar, a Chartered Market Technician (CMT), pointed out that the Bitcoin price is approaching a critical support zone, and a break below this area could trigger a significant pullback.
Kibar believes the lower trendline of Bitcoin's potential 'ascending wedge' pattern lies at $66,000. Technically, a price drop below this level would signal weakening momentum and could initiate a downward trend. Ascending wedges typically appear at the end of an uptrend, indicating diminishing price momentum.
The analyst cited historical data, suggesting that similar patterns have historically led to an average pullback of 10% to 20% after being broken.
Aksel Kibar also emphasized that the overall technical picture in the current cryptocurrency market shows signs of fatigue, with bearish signals like bearish flags and bearish wedges appearing in many crypto pairs. He stated that he references the 52-week (365-day) moving average in his trend analysis and advises investors to exercise greater caution in the current market environment.