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 hints at a death crossover of the 50-and-200-day DMA
- The daily-MACD indicator shows its lines are on the verge of slipping below the neutral zone.
- The intraday trading volume in the BTC coin is $1.21 Billion, indicating a 9.275 fall.
Source- BTC/USD chart by 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 above the trend defining 100 and 200 EMA, indicates a bearish trend. Moreover, the technical chart shows the 50 and 200 DMA are on the verge of 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 at the overbought zone, supporting the price action for a reversal.
BTC Price Chart Shows A Rounding Bottom Pattern
Source- Tradingview
The BTC price is currently trading at $43721, indicating a 7.8% pump from the bottom support. This minor price reversal has formed a rounding bottom pattern in the 4-hour time frame chart. The price has already breached the $43537 neckline, and the crypto traders could grab a long opportunity if the price sustains this level.
The falling average directional movement index(34) line signals the decreasing bearish momentum in the price.
The MACD indicator shows the signal and the MACD line can soon cross above the neutral line, providing more confirmation for the bullish pattern.
- Resistance levels- $45837 and $48000
- Support levels- $43523 and $40000
Disclaimer
The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
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Source: https://coingape.com/bitcoin-price-analysis-death-crossover-brings-nightmares-on-satoshi-street-is-there-a-buying-opportunity/