The Bitcoin price sustained a remarkable rise in selling pressure as fear takes control of the crypto market. The price action creates a falling wedge pattern in the daily chart as it approaches the $40K mark with an 18% fall in the previous two weeks from the opposition trendline.
Furthermore, the death cross increases the chance of a bearish continuation. Will the bulls overcome the selling pressure, or will the price hit the $35K mark?
The key technical points of this Bitcoin Analysis are:
- The BITcoin price forms a declining wedge pattern
- The regular RSI chart shows a death cross in the daily chart
- The full-time trading volume in Bitcoin is $27 Billion, signifying a 35% loss
The last time when we covered an article on the BTC/USD, the coin price was teasing a bullish recovery from the $46K mark due to the bullish divergence in the RSI indicator. The increase in selling pressure results in the effect of the $46K mark and decreases the price lower to the $40K zone.
Bitcoin Price Struggles to Sustain
Moreover, the Bitcoin price struggles to sustain near the $40K support zone and forms a falling wedge pattern in the daily chart. Also, the price stayed close to the support trendline and suggested a reversal if the bulls overcome the selling pressure.
The price fell from 18% in the past two weeks, which resulted in the death cross of 50 and 100 days EMA in the daily chart. Therefore, the coin price indicates a rise in the underlying bear market and suggests a fallout.
The daily Relative Strength Index (29) exhibits the overestimated nature of the coin and shows the bearish yet more approaching saturation level.
That’s why a short-retracement is possible before a fallout. Though, after the fallout of the $46K support level, the Bitcoin price falls to the $40K mark with a 10% fall. Though, the bulls will have to overcome multiple trading floors to restore the uptrend.
