BTC Technical Analysis: Below $41K, Will Bitcoin Bears Tests $35K Mark?
Table of contents
The BTC price action forms a double top pattern with the recent bullish failure to overcome the sellers at $45K, resulting in a freefall below $41K. Will the bears break below the upcoming support trendline to test the $35K mark?
Key technical points:
Past Performance of BTC
With the failure to surpass the $45K mark, the Bitcoin prices fall below the crucial support levels to reach the $40K. The price action showcases an evening star pattern resulting in the fallout of the double bottom pattern in the BTC/USD chart.
Currently, the market price of Bitcoin is $40,734 as the bulls try to control the falling prices and halts near the support trendline.
Source-Tradingview
BTC Technical Analysis
Despite the drastic fall in the BTC prices, the number of active users is higher than the previous bear cycles, as per the onchain analysis by Glassnode.
The crucial 50,100, and 200-day EMAs maintain a bearish alignment as the prices fail to sustain above the 50-day EMA. Hence, the price is below all the crucial EMAs represents a bear cycle in action.
The RSI Indicator slope shows a sharp fall below the 14-day average and the 50% mark followed by a sideways movement. Hence, the indicator slope in the nearly oversold zone represents increased bearishness.
The MACD indicator represents a bearish crossover of the MACD and signal lines in the BTC/USD daily chart due to the recent fall. Moreover, the start of the bearish histogram indicates the start of a downtrend.
In a nutshell, the price action and the technical indicators project a downfall to the support trendline.
Upcoming Trend
The BTC prices may shortly breach the $40K mark to halt near the support trendline in upcoming days. However, a rise in selling pressure can result in the $35K mark downfall. Hence, traders can find excellent selling opportunities in the upcoming trend.
Support Levels: $40K and $35K
Resistance Levels: $45K and $50K