Crypto Daily: Bitcoin formed pattern for decrease

Feb 04, 2022
12:02
2 min reading

Choise.com team

Over the last 24 hours, Bitcoin has risen slightly and now it is trading at above $37,000. Trading volume remains almost unchanged and amounts to $19 billion. Altcoins also stagnate while trying to take different directions.

Let’s take a look at the Bitcoin chart and try to figure out what to expect from it this coming weekend:

Locally, Bitcoin has been in a sideways movement since January 24. During this time, a rising wedge pattern has finally formed on the chart. Moreover, the price has broken the lower border of this figure. However, sellers did not force their hands yesterday and, therefore, the price went up. There is a high probability that today this growth will continue to the lower boundary of the wedge at the $38,000 level. Thus, we may see a classic retest after the breakout.

In this case, you should not think that BTC will turn upward. Most likely, pushing the price to the $38,000 mark is another manipulation, given that this is a strong resistance level close to the global downtrend line. At the moment, breaking it is extremely difficult as there are no buyers on the market. Thus, we expect the price to reverse here.

The situation is exacerbated by the fall in stocks. Yesterday, Facebook’s shares crashed by 20% due to the company’s income statement. It was reported that the metaverse project continues to significantly increase its costs. In 2021, Facebook already lost almost $13 billion which caused shares of all other social networks to drop. Currently, Metaverses are directly related to the crypto industry, so these negative sentiments can spread over this market as well.

It is also necessary to take into account that the week is ending today and many major market participants will fix their positions. In recent months, this has repeatedly led to strong price collapses.

We still don’t see any significant changes in the market sentiment, as uncertainty and fear still prevail. All this reinforces the negative perception of the crypto industry and any news may trigger another decline.

According to our calculations, Bitcoin may drop to $34,000. Soon, the price may even plunge 10-20% and reach $30,000 – $32,000.