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.
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