Bitcoin has taken a tumble this week, dropping below several support levels. After falling below $71,000, it’s now hovering around $67,000, signaling a potential downtrend.
Consolidation Zone
Crypto analyst Bitcoin Signals has identified a consolidation zone between $67,000 and $72,000. This suggests a short-term correction is underway, with the price fluctuating within this range.
Falling Wedge Pattern
Within the consolidation zone, a falling wedge pattern has emerged. If this pattern continues, Bitcoin could potentially break out of the $69,200 resistance and aim for $72,000 again.
Resistance at $72,000
However, Bitcoin Signals believes that the price could continue to decline unless it can break through the $72,000 resistance. This is based on the current market structure and price behavior.
Selling Pressure
Selling pressure is currently strong, as evidenced by the increase in trading volume. This suggests that sellers are driving the price down.
Recent Declines
In the past 24 hours, Bitcoin has lost nearly 4% of its value, falling to $66,700. This has wiped out most of its gains from last week and brings it to its lowest level since May 2021.
