Bitcoin price dips below $37K as a descending channel pattern comes back into play

As global financial markets experience increased volatility, the crypto market is back in red on February 2.

Cointelegraph Markets Pro and TradingView data show that BTC prices hovered around $38,200 in the morning. However, a wave selling drove the price up to $36,800.

BTC/USDT 1-day chart. Source: TradingView

Here are the views of traders and analysts on Wednesday’s Bitcoin price action. Also, what areas should be kept in mind as we move forward.

Below $36,700, bulls are in trouble

Crypto trader and pseudonymous Twitter User ‘HornHairs’ provided insight into the main support and resistance areas of Bitcoin. He posted the following chart, which indicated a solid level support at $37,400.

BTC/USDT 1-hour chart. Source: Twitter

The analyst stated that if we cannot reclaim $38,700, a move back up to $38,000s would be a bearish test, unless there is support at this level.

However, a bearish movement could cause the price to continue falling. The chart above indicates that bulls are having trouble below $36,781.

HornHairs said,

“A drop below $36,700 is possible and we may move to take out range lowest, considering that yesterday was the range high.”

Is the fourth time the charm?

The following chart was posted by Daan Crypto Trades, a crypto trader and pseudonymous Twitter account. It shows the declining price action of Bitcoin since November’s top.

BTC/USD 1-day chart. Source: Twitter

Daan Crypto Trader said,

“Everyone seems now to be following the same line which could lead to some fakeouts. Be careful. The diagonal is currently being tested for the fourth time. What will happen if it breaks?

Related: BTC prices plunge with stocks as a fresh sell-off has PayPal losing nearly 25%

“A bull market that is fully intact and consolidating”

Technical analyst and pseudonymous Twitter User ‘Decodejar’ provided a forward-looking analysis of what might happen next to Bitcoin. He posted the following chart, which shows a possible drop in the top cryptocurrency.

BTC/USD 1-day chart. Source: Twitter

Decodejar says this chart is being circulated by analysts and shows a “bearish ABC Wave 4 expanded flat, ending lower than last year’s lows.”

This is a very common pattern. Decodejar said that there’s not enough volume to satisfy an impulse and that he doesn’t think we will break the lows of last year.

Decodejar said,

This all boils down into the fact that correction is almost complete at these levels, even though the market still needs time. I don’t see a bear market. In fact, it is something I have stopped hearing. I see a bull market that is fully intact and consolidating.”

The total cryptocurrency market is now worth $1.729 trillion, and Bitcoin’s dominance rate at 41.1%.

com. You should do your research before making any investment or trading decision.

https://cointelegraph.com/news/bitcoin-price-dips-below-37k-as-a-descending-channel-pattern-comes-back-into-play