Wedges can also break bearish or bullish, depending on the slant of the structure. Falling wedges are most commonly bullish formations that break to the upside, while rising wedges break down once bottom support is breached.

Wedges are notorious for false breakouts in the cryptocurrency market.

Rising Wedge

In the below example, after a final test of the rising diagonal resistance, price broke through the rising support, causing a strong crash and continuation of the prior downtrend.

A throwback to retest the bottom trend line as support turned resistance took place before the crash picked up in severity. 

Falling Wedge

Falling wedges break to the upside as depicted in the example below.

Disclaimer: The article is provided for educational purposes only. It does not represent the opinions of NewsBTC on whether to buy, sell or hold any investments and naturally investing carries risks. You are advised to conduct your own research before making any investment decisions. Use information provided on this website entirely at your own risk.

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