Falling Wedge Shows That The Price of Bitcoin May Fall Further

A look at the BTC/USD chart shows that the cryptocurrency is still showing a bullish trend despite recent losses. The coin has formed a falling wedge in the past hours.

The implication of this is that the price of the digital currency is likely to fall further despite the recent horizontal action in the past week. It is likely that the price of the asset would move towards the $35,500 support despite the recent activity. It is from around this support that recovery for upward price movement is likely going to commence.

 

The objective of the next move would be $41,000. This could be possible in the next few weeks judging from the market sentiment which shows that the coin is moderately oversold. In the meantime, we can see that this is a strong resistance and even if BTC tests this range, it may not be able to break the resistance at the first attempt. BTC is presently trading above $36, 600, showing a loss of 4.52%.

Indicators show that BTC is still bullish and breaking through the next resistance all the way to $42,000 is possible. So the summary is that the price of BTC could drop further around $35,000 but we should expect higher prices after a bounce off the support.

Using the Relative Strength Index indicator, it shows the market moved to the oversold region briefly on January 24.  Today, February 3, the coin records RSI of 36.

 

Author: Jofor Humani

Jofor is a crypto journalist with passion for investigative review of projects with the aim to determine the authenticity of their claims.