Bitcoin prices have edged up 3.4% over the past 24 hours to trade around $28,346 in early Asian trading on Wednesday. The top digital asset by market cap is retesting last month’s resistance zone. A rejection at this level could result in a head and shoulders technical formation leading to further capitulation in the coming weeks. On the upside, a breakout above the current zone could lead to a short squeeze to retest this year’s ATH.

Captain Faibik’s thoughts on Bitcoin price action

According to a recent analysis by a popular cryptocurrency influencer and analyst on Twitter @CryptoFaibik, the Bitcoin price could be forming a rising expanding wedge on the daily timeframe. On the four-hour timeframe, the Bitcoin price has formed a possible double bottom that could validate a rising expanding wedge. As a result, the analyst predicts that the Bitcoin price will hit new highs in the coming days.

“If bulls reclaim the 28.7k resistance, a bullish rally of 10-12% is expected in the coming days,” the analyst noted.

Bear in disguise

In this regard, the formation of a rising broadening wedge on the daily chart suggests that bears are trying to take control amid buying pressure. In most cases, a rising broadening wedge is soon followed by a bearish trend reversal at the peak. Therefore, cryptocurrency traders should watch out for a bear trap that could push Bitcoin price towards $25,000 in the coming weeks.

The bigger picture

After enjoying a profitable first quarter and breaking last year’s logarithmic decline, the crypto market is expected to consolidate in the coming quarters before the next Bitcoin halving. In addition, as the global regulatory framework, led by the European Union, becomes clearer, mainstream investors are preparing to enter the crypto market.