- BTC/USD drops below falling wedge pattern support as bears charge towards $7,500 USD.
- Bitcoin set to fall further as technical indicators turn bearish.
Bitcoin (BTC) has always been the driver of the market and the current downtrend does not draw a rosy picture to the future of the cryptocurrency market. Since spiking above $10,000 USD in late October, Bitcoin price has witnessed a drawdown in the market sentiments and volumes traded, switching the technical indicators bearish.
Bitcoin on road to $7,500; price crosses falling wedge support
Bitcoiners are looking at the daily candle charts with anxiety waiting to see the close of the current daily candle to determine the possible direction in the coming days. Looking at the charts, a nice falling wedge pattern has formed on the daily candles in the past three weeks taunting a possible bullish reversal. But it may not be given the current selling pressure from miners.
Testing wedge resistance at $8151 USD on Nov. 18, BTC/USD gave hope to investors of a possible breakout above the level reaching an intra-trading high of $8,546 USD. However, the price has since retraced to $8,131 USD, as at time of writing, worrying investors of a possible break below the support level.
BTC/USD technical indicators turning bearish
If the price closes below support, BBTC/USD bull will be in for a torrid time in the coming days. The MACD line is also widening apart from its signal line showing bearish signs. This signals a possible drop towards the $7,800 and $7,500 major support levels.
Notwithstanding, a quick glance at the Bollinger bands (BB) on the 1D timeframe, gestures a possible continuation of the bearish trend as the price crossed below the lower BB.
Images from TradingView
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Been in the field since 2015 and he still love everything blockchain and crypto! FC Barcelona fan. Author and journalist. Follow him at @lujanodera.