What's a rising wedge?

Two trend lines that meet in the middle make up a bearish chart pattern called a rising wedge. The lines of trend go up and then meet.

The first trend line connects the most recent lower highs and higher highs, while the second trend line connects the most recent lows.

The shape that was made looks like a triangle that is turned upside down. A rising wedge has the shape of a falling wedge.

Since the lower trend line is steeper than the upper one and the low is higher than the high, the rising wedge pattern could be seen as a bearish wedge.

Even though the falling wedges are all the same shape, the only things that are different are the angle of the triangle and what the pattern means.

The rising wedge (ascending) pattern is a bearish pattern because it predicts that prices will go down or that a downtrend will begin. As the wedge grows, the number of trades goes down.

Even though the wedge still shows that prices are going up, the fact that trade volume is going down could mean that sellers are closing their positions in preparation for a negative breakout.

On the other hand, the falling wedge pattern's bullish slope shows that a near-pattern rebound is on the way.

A rising wedge is interesting because it can be a continuation pattern during a downtrend or a reversal pattern during an uptrend.

Makes and Measurements

Most of the time, the rising wedge pattern follows long-term trends, which makes it easy to trade cryptocurrencies.

For example, if a trend has gone too far too fast, the wedge pattern may show up as a sign that it is about to change.

When there are more buyers than sellers, strong trends happen. At each price, buyers and sellers are doing business.

When there are more buyers than sellers, the price needs to go up quickly. This should make more people want to start selling on the market.

The price will keep going up quickly if the higher price doesn't make more people want to sell. This quick change causes strong uptrends that start to bring in more buyers who don't want to miss out on the trend (known as FOMO, or fear of missing out).

Once this strong trend has taken hold and the big crypto whales have stopped buying, which will bring in FOMO buyers, the price will start to go back up.

Every time the price goes up, it goes down again, which brings in more buyers. Because of a pattern called a "rising wedge," the market is now ready for a big drop.