Bitcoin has broken through the $37K support level to the downside, resulting in a more than 10% drop in price yesterday. This price action could set the stage for a bearish scenario, potentially pushing the price toward the $30K demand zone.
Given the current market structure, the 50-day and 100-day moving averages are likely to form a bearish crossover in the coming days, which could amplify the selling pressure.
On the 4-hour chart, the price has been forming a falling wedge for the past couple of weeks after being rejected from the $43K level. A breakout occurred, but the price quickly dropped back, invalidating the pattern. This false breakout has caused a drop from a substantial bearish flag that has been developing over the last few months. This price action signals a bearish continuation in the short term, and it’s possible that the price could set a new lower low beneath the previous $33K bottom. The RSI has also entered oversold territory, which could indicate a period of consolidation or a brief bullish pullback before the next bearish phase unfolds.
Bitcoin’s price faced a steep decline of over 10% yesterday, breaking below the critical $37K support. As bearish sentiment takes hold, there are growing concerns that the price could continue its descent toward the $30K region. On the other hand, the exchange reserve has been steadily decreasing over the past few months, as bitcoins continue to be withdrawn from exchanges. This aggressive accumulation, coupled with the potential for a supply shock, has failed to prevent the ongoing price decline.
This trend highlights a lack of demand in the market, driven in part by the broader economic and geopolitical uncertainties currently affecting the global economy. Additionally, the futures market played a significant role in yesterday’s price crash, as a long squeeze triggered a rapid price drop.
