According to TradingView, after almost two weeks of consolidation, Bitcoin has dropped below the ascending channel that has formed since January 2022. The channel previously served as a guide for price.
As the leading cryptocurrency’s daily chart shows, the ascending channel has played right for Bitcoin price at least five times, allowing traders to properly highlight local resistance and support points and trade based on it. The dip below the channel could actually be a catalyst for further downward movement in digital gold, as the concentration of large orders at the lower border of the pattern indicates that some traders are actively working to reverse it at this point.
Additional selling pressure may arise due to the concentration of “sell” orders below the above support line. Another drop will be supported by the market to limit the sell orders of those who open their positions on the support line.
The high liquidation volume speaks in favor of the theory as $200 million worth of long futures have been traded in the last 24 hours. Such a large amount of liquidated orders shows the active belief of traders that the situation will be reversed around $39,000.
A drop below $40,000 should be considered a strong psychological loss that could impact BTC’s price performance. Several experts have pointed out that if Bitcoin suddenly enters the $30,000 range, the market could enter a full bear cycle as major support has yet to form.
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