Bitcoin price shows significant increase in selling pressure as fear takes control of the crypto market. The price action formed a falling wedge pattern in the daily chart as it approached the $40k mark with an 18% drop over the past two weeks from the resistance trendline. Furthermore, a death crossover increases the chances of a continuation of the decline. Will the bulls overcome the selling pressure, or will the price hit the $35k mark?
Main technical points:
- BTC price forming a falling wedge pattern
- Daily RSI chart showing a death cut in daily chart
- Bitcoin intraday trading volume is $27 billion, showing a 35% loss.
The source-Tradingview
The last time we mentioned an article about BTC/USD, the coin price is showing an uptrend recovery from the $46,000 mark due to the bullish divergence in the RSI. However, an increase in selling pressure led to a drop of the $46,000 mark and a drop to the $40k region.
The price struggled to sustain near the $40K support area and formed a falling wedge in the daily chart. The price is close to the support trendline and indicates a reversal if the bulls overcome the selling pressure.
The price drop of 18% over the past two weeks resulted in a death cross of the 50 and 100-day EMAs in the daily chart. Thus, the coin price shows an increase in the underlying downtrend and hints at a decline.
The daily Relative Strength Index (29) displays the oversold nature of the coin and shows that the downside move is approaching saturation. Therefore, a short-term retracement could occur before the drop.
BTC coin price near the confluence of the trendline and the support area at $40K
The source- Tradingview
After the drop of the $46,000 support, the price of BTC dropped to the $40k mark with a 10% drop. Furthermore, the coin’s price consolidation between the support zone and the breakout can determine the upcoming trend.
However, the bulls will have to break through many selling areas to recover the uptrend.
Bitcoin Fear and Greed Index
In Between on sale-Turn off in the crypto market, the Bitcoin fear and greed index is currently ranked 23/100, which shown One pole fear between participate in the market.