Bitcoin price falls below $37,000 as descending channel pattern returns

The cryptocurrency market was once again in the red on Feb. 2 as global financial markets continued to experience heightened volatility. Data from TradingView shows that after Bitcoin swung around $38,200, it was hit by a sell-off that pushed the price down to $36,800.

BTC/USDT chart 4 hours | Source: TradingView

Here are some comments from analysts and traders on Wednesday’s bitcoin price action and areas to watch for going forward.

Bulls struggle below $36,700

In a tweet yesterday, trader and Twitter user HornHairs provided details on Bitcoin’s key support and resistance areas, posting the chart below, which shows solid support near $37,400.

BTC/USDT 1 hour chart | The source: hornhair

According to the analyst, after finding support at this level, “unless $38,700 can be reached, a pullback to $38,000 is just a bearish retest.”

Therefore, only a move lower could push the price further lower, with the chart above showing the bulls struggling below $36,781.

“There are chances for the price to drop below $36,700 and slide off the bottom of the range after breaking the top of the range on Feb 1.”

Break at the fourth test?

On the other hand, trader and Twitter user “Daan Crypto Trades” has commented on BTC’s declining price action since its peak in November. post The chart below shows the difficulty Bitcoin has encountered in breaking this trend.

BTC/USD chart 1 Day | The source: Daan Crypto Trades

“Everyone seems to be watching this line, which could lead to a fakeout. So be careful. It’s testing the 4th diagonal right now, when will it break?”

“BILLION Fully intact bull is consolidating.”

Technical analyst and Twitter user “Decodejar” analyzed what could happen next for Bitcoin with the chart below, which outlines a potential drop.

BTC/USD 1-day chart | The source: decoding

According to Decodejar, this is a popular chart used by analysts that “shows a bearish ABC-4 wave that extends flat and ends below last year’s low.”

Despite being a popular pattern, Decodejar noted that “there isn’t much volume to build momentum” and that “BTC is not going to break last year’s low.”

decoding to speak:

“In short, the correction is almost complete at these levels, although the market needs more time. I don’t see a bear market, in fact I’m sick of hearing about it. I see a consolidation of a fully intact bull market.”

The total crypto market cap currently stands at $1,782 trillion and Bitcoin’s dominance is 39.3%.

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