BTC Continues in Descending Channel

Neither this post nor any other on cryptofal.com should be taken as financial advice. It is not.

Bitcoin is continuing down its descending channel on the daily candle chart after testing support around $37.5k.

It’s very likely that BTC could continue to consolidate in this area. Volume is holding fairly steadily over the past week and a half, so it wouldn’t be surprising if BTC remains in this area unless it receives an influx of volume large enough to break its pattern. Until that happens, BTC will likely continue bouncing between local trend lines and areas of support.

The MFI is moving fairly neutrally in its current range and looks like it could continue. The MACD is also moving fairly neutrally, with a slight attempt at swinging upwards, however, it still has yet to definitively break into the positive range.

The overall cryptocurrency market is currently around $1.73 trillion with an approximate volume of $85 billion. BTC dominance is up to 42.2% with ETH dominance up to 19.8%. Both tokens have taken significant amounts of the market share from the altcoin space.

Ethereum is still continuing its descending wedge as it gains larger amounts of the market share. The MFI has moved upwards slightly, with the MACD remaining fairly neutral in negative territory. ETH’s volume has remained relatively steady over the past couple of weeks.

Usually, this descending wedge pattern is considered bullish, but it’s important to remember that fundamental developments, as well as developments in BTC’s price, could influence ETH’s price action.