According to TradingView, after almost two weeks of consolidation, the Bitcoin (BTC) price has dropped below the ascending channel that has formed since January 2022. The channel previously served as a guide for price. This situation caused other cryptocurrencies such as SHIB, ETH, XRP to experience a decrease. Here are the details…
BTC price drop sharply: What’s next?
As the first cryptocurrency’s daily chart suggests, 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. According to expert Arman Shirinyan, the drop below the channel may actually be a catalyst for further downward movement of BTC, as the concentration of large orders at the lower border of the pattern indicates that some traders are actively betting in the opposite direction of the negative price action at this point.
According to the expert, additional selling pressure may arise due to the concentration of “sell” orders below the above-mentioned 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-term trades have been made in the last 24 hours. Such a large amount of liquidated orders shows that traders are actively betting on the reversal around $39,000.
The latest situation in the bearish market and changes in altcoin prices
A drop below $40,000 should be considered a strong psychological loss that could affect the price performance of BTC. Several experts have pointed out that if Bitcoin suddenly enters the $30,000 range, the market could enter a “complete bear cycle” as major support has yet to form. At the time of writing, Bitcoin is changing hands at $38,499, down 3.2 percent. As
Kriptokoin.com, the second largest crypto, Ethereum, is trading at $2,814 with a loss of 4.8 percent. BNB fell 5.1%, SOL 6.5 percent, and XRP 8.4 percent. On the other hand, LUNA fell 3.1 percent, ADA 7%, DOT 9.1 percent and AVAX 7.1 percent. Meme coins DOGE and SHIB lost over 7 percent.
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