• Avalanche Hikes by 60% in less than three months
• Bullish sentiment yet to develop amidst bearish bias
• For bulls to gain traction, a break in the falling wedge pattern is essential

Cryptocurrency markets saw a tough 2022, with investors struggling to make a profit. Fortunately, the bearish climate of last year seems to have shifted, with 2023 bringing in some bullish returns. 

As the first quarter of the year draws to a close, leading cryptocurrencies have all seen considerable gains since their lows. Avalanche, for instance, has seen an impressive 60% YTD increase.

Though 60% returns in a short period of time are impressive, it’s not out of the ordinary for the crypto market. But what does the future hold for AVAX/USD? Will the bull run continue or is it time to take profits and wait for another opportunity?

TradingView – Chart AVAXUSD

A Falling Wedge Lingers, Despite the Bearish Bias

Avalanche has found strong support in the $10 area, and has surged since the start of 2023. But despite the gains, a bearish bias still remains. Bulls, however, may be encouraged by the current falling wedge pattern.

A falling wedge, which appears at the bottom of bearish trends, is a bullish pattern. To take advantage of it, investors must wait for the price to break through the upper trendline. In other words, until then, speculation is limited as the reversal pattern could be invalidated at any time.

Those that purchased Avalanche may be wise to book partial profits in the early part of the quarter and wait for the price to breach $20. The $30 area should then be considered a key resistance level. If the price fails to break above $10, the reversal pattern will be invalidated, which should serve as the cue to exit any bullish setup.