The price of bitcoin (BTC) fell slightly Thursday after being correlated to the U.S. stock market. Wall Street was dragged down by the plunge in the Meta platform after Wednesday's disappointing earnings report.
- Bitcoin (BTC) consolidated below $38,000 on Thursday.
- Price trading is broadening the trading channels.
- If the lower trend line is broken, more downside is expected.
The heat of the Meta crash was felt throughout the cryptocurrency market as the total market cap fell 5.5% in value in today's trading. At press time, BTC/USD was trading near $36,000, down 0.82% on the day.
Bitcoin is in a downtrend
On the 4-hour chart, Bitcoin (BTC) price faces an uphill task in breaking the macro downtrend that started in November. The rising wedge pattern is a bearish one and depicts a negative outlook for Bitcoin.
Source: Trading Views
BTC is already trading below its 50-day SMA of $37,544 and it is now on the verge of breaking the lower trendline formed by the wedge. If this happens, then this will create an opportunity for sellers to enter the next round of declines to $34,000.
The daily Relative Strength Index (RSI) is trading at 37 with a bearish outlook. Momentum indicators are confirming a negative outlook for BTC.
Alternatively, if the price breaks above the DMA, a rise to $38,000 cannot be ruled out. Next, market participants could test the psychological price level of $40,000.