Bitcoin (BTC) price had discounted nearly 40% when the price dropped to the $40000 support. The coin is under the influence of a falling channel pattern, leading to this correction rally. Moreover, the technical chart shows the 50 and 200 DMA can soon provide a death crossover, boasting the bearish sentiment among market participants.
Key technical points:
- The BTC price provides at a death crossover of the 50-and-200-day DMA
- The intraday trading volume in the BTC coin is $18.27 Billion, indicating a 0.3% fall.
Source- Tradingview
As mentioned in our previous coverage of Bitcoin price analysis, the coin price resonates in a falling channel pattern of the daily time frame chart. This pattern initiated way back in November 2021 and is still extending the correction phase.
This down rally made a new lower low at a psychological level of $40000. The price identified strong support from this level, indicating reversal signs in price action.
As per the crucial EMAs(20, 50, 100, and 200), the BTC coin price trading below the trend defining 100 and 200 EMA, indicates a bearish trend. Moreover, the technical chart shows the 50 and 200 DMA a death cross, attracting even more sellers in the market.
However, the Daily-Stochastic RSI shows a bullish crossover of the K and D lines and is steadily rising towards the higher level.
BTC Price Chart Shows A Cup And Handle Bottom Pattern
Source- Tradingview
The BTC price is currently trading at $43367, indicating a 9.17% pump from the bottom support. This minor bullish reversal has formed a cup and handle pattern in the 4-hour time frame chart. The resistance zone(neckline) for this pattern is around the $45000 mark, holding an excellent long opportunity for crypto traders.
Moreover, completing this bullish pattern, the coin price would also breach the resistance trendline of the falling channel, initiating a recovery rally.
The falling average directional movement index(34) line signals the decreasing bearish momentum in the price.
- Resistance levels- $45000 and $48000
- Support levels- $42500 and $40000
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