Wedge
A wedge is a pattern where price moves between two converging lines that both slope the same way. A rising wedge more often breaks down, a falling wedge more often breaks up.
How it works
In a rising wedge both highs and lows climb, but the lows climb faster, so the lines converge. Price is still rising, but each new high comes harder. In a falling wedge both highs and lows drop, with the highs dropping faster.
That is what sets a wedge apart from a triangle: in a triangle the lines slope in opposite directions or one is flat, while in a wedge both slope the same way. Inside a wedge you often see divergence on RSI or MACD: price makes new extremes while momentum fades.
A wedge can be a reversal pattern at the end of a trend or a continuation pattern as a pullback within a trend. For example, a falling wedge inside an uptrend often ends with a break upward. Confirmation is a close beyond the opposite side of the wedge.
BTC is climbing: lows at $60,000, $62,500, $64,000 with highs in between at $64,000, $65,500, $66,300, so the swings keep shrinking. Both lines rise but draw closer, and RSI is lower at each new high. A close below the lower edge, around $64,500, completes the rising wedge. The start of the wedge, near $60,000, is often used as a target.
The mistake is mistaking a wedge for a rising channel and buying the lower edge as if the trend were healthy. In a wedge each push up is weaker than the last, and the break down can be sharp. Check whether the lines converge and momentum fades, and do not open new longs near the wedge's apex.
Questions and answers
What is a wedge pattern in simple terms?
It is a narrowing corridor with both sides sloping the same way. Price still moves in that direction, but with less and less force.
Is a rising wedge bullish or bearish?
Usually bearish: it more often ends with a break down. A falling wedge, by contrast, more often breaks up.
What is the difference between a wedge and a triangle?
In a wedge both lines slope the same way. In a triangle they slope in opposite directions or one of them is flat.
Related terms
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Updated: 2026-10-19