The crypto bleeds red again today as bulls fail to take control of the steering. BTC tardes down by 3.6% around $42K. ETH has slid below $3K trading at $2989. All the other tokens on the chart too follow the trend as they shed gains in a fast pace.
Bitcoin Price Action
Bitcoin’s (BTC) price has dropped for the second day in a row. While trading in a range of $42k and $45k, investors are in a state of upheaval. As the recent price rise has come to a halt, technical indicators have taken a neutral attitude.
Bitcoin’s (BTC) price has been moving inside the ‘rising wedge’ pattern on the daily chart, with a range of $34k to $45k, up 21 percent from January’s single-day rise. BTC/USD has retraced to the stable support zone after forming a swing top.
Acceptance near the 50-day moving average is the ideal location for a reverse retracement, which might return the asset to its previous trend track.
A move in bullish mood, on the other hand, might lead to a break of the critical support zone of $41,700. The bullish thesis will be invalidated if the price breaks through $40,000.
BTC Price Set to Hit $50K?
On Twitter, a crypto education and market research account recently shared a chart depicting what the daily OBV chart for bitcoin might be suggesting. Income Sharks’ analysis of prior movements on this chart reveals that the digital asset has once again reached a critical juncture that could lead to additional growth. The last time the cryptocurrency charted in this manner was in July 2021.
The months of July and August were crucial for the digital asset. This was the first time bitcoin had reached the $60,000 mark. It had risen from $30,000 to a new all-time high in just a few weeks, all thanks to bitcoin’s double bottom on the OBV chart. Bitcoin has now re-entered the same pattern, and if history is any guide, it may be preparing for another rally.
The fact that the digital asset has created another double bottom on the chart, as well as a very sharp bullish double V spike, may indicate that a break above $50,000 is on the way. This is not only a significant indication, but it is also almost more bullish this time. Furthermore, this could very well be the bottom of the downturn, indicating that the digital asset is about to embark on another bull run.
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