After nearly two weeks of consolidation, bitcoin has finally fallen below the ascending channel that has formed since January 2022, according to TradingView. The channel previously acted as a guideline for the price.
As the Bitcoin daily chart suggests, the ascending channel has played correctly at least five times for the price of BTC, allowing traders to correctly highlight local resistance and support points and place trades. on this basis.
The drop below the channel may actually become a catalyst for further downward movement in digital gold, as the lower edge of the formation exhibited a concentration of large orders suggesting that some traders were actively betting on the reversal on the verge.
Additional selling pressure could appear due to the concentration of “sell” orders below the aforementioned support line. Further decline will be fueled by the market to limit sell orders from those who opened their positions just at the support line.
The high volume of liquidation argues in favor of this theory as $200 million in long positions have been liquidated in the last 24 hours. Such a volume of liquidated orders suggests that traders have been actively betting on the reversal around $39,000.
The drop below $40,000 should also be seen as a strong psychological loss, which can affect BTC price performance. Several experts have noted that the market could enter a full bear cycle if bitcoin suddenly, finally, enters the $30,000 area, as no major support has formed around it yet.
Today, bitcoin is trading around the price of $38,500 and giving no sign or signal of a reversal.