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Bitcoin price is trading just above the $31,000 price level. Price has formed a downward sloping wedge pattern. Patterns like that are trend reversal patterns.
The longer price stays inside the pattern, the stronger it becomes. The higher the chances of a reversal in trend. Price is now touching the lower wedge boundaries and I expect at least a short-term bounce towards the upper boundary around $33,000. At current levels I prefer to be neutral, while a break above $40,000 would be a bullish sign. In order to achieve a trend change, traders will need to push price above the wedge pattern resistance at $33,000 and eventually break above the major highs around $40,000-$41,000.
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