BTC Technical Analysis: Sellers Ready to Drive the Prices Back to $35K
BTC is a peer-to-peer internet currency. This means that all transactions occur directly between independent, equal network participants. This comes without the necessity of any intermediaries to facilitate or permit the transactions. In Nakamoto's own words, to enable "online payments to be sent directly from one party to another without going through a financial institution."
Let us move ahead to read about Bitcoin technical analysis.
Past Performance of BTC
The BTC prices fail to rise above the resistance trendline of the falling channel pattern in the daily chart. The coin price falls 2.73% in the past 24 hours and starts the formation of an evening star pattern within the channel. Moreover, the Bitcoin price is down by 20% in the past two weeks and is 46% lower than its all-time high near $69,000.
BTC Technical Analysis
The BTC prices are retracing within the falling channel as it completes an evening star pattern near the $38,000. Moreover, the downfall shows an increased trend momentum compared to small-bodied candles seen in the last week.
The crucial Exponential Moving averages show a bearish crossover of 100 and 200-day averages in the daily chart. With this crossover, the EMAs achieve a bearish alignment and increase the overall fear among the investors.
The DMI indicator shows an increased trend momentum as the ADX line rises above 40%. As for the trend direction, it remains bearish as the -DI is above the +DI with the gap starting to increase again.
The RSI indicator shows a reversal in the slope as it struggles to sustain above the oversold zone. Furthermore, the slope approaches the 14-day SMA, and the breakout of which will indicate the bears regaining trend momentum.
In conclusion, the indicators reflect a regrowth in underlying bearishness as the price fails to overcome sellers at the resistance trendline.
Upcoming Trend
The BTC price initiates a bearish cycle within the falling channel pattern as the sellers dominate near the resistance trendline. Therefore, a reversal to the $35,000 is possible to create a potential double bottom pattern.
Sellers can find entry opportunities at current prices with a target near the $35,000 and the support trendline. On the opposite side, the resistance levels are at $39,000 and $40,000 above the resistance trendline.
At press time, TradingView Technical Analysis Widget gives a "SELL" signal for the BTC.