Bitcoin (BTC) price trades with modest losses on Thursday following the correlation with the US stock markets. Wall Street was pulled down by a slump in Meta platforms after its disappointing earnings reports on Wednesday.
- Bitcoin (BTC) consolidates below $38K on Thursday.
- The price trading in a broadening trading channel.
- Expect more downside if breaks below the lower trend line.
The overall crypto market was feeling the heat of Meta meltdown as the total market cap declined by 5.5% in today’s trading value. As of press time, BTC/USD is trading near $36k, down 0.82% for the day.
Bitcoin in downtrend
On the 4-hour chart, Bitcoin (BTC) price faces an arduous task in breaking the macro downtrend that started in the month of November. A rising wedge formation, which is a bearish formation depicts the negative outlook for Bitcoin.
BTC is trading below the 50 DMA at $37,544 already, now it is on the verge of breaking the lower trend line of the wedge formation. If that happens then that will create an opportunity for the sellers to enter into the next leg down toward $34k.
The Daily Relative Strength Index (RSI) trades at 37 with a bearish outlook. The momentum indicator is confirming the negative outlook for BTC.
Alternatively, an upside toward $38k could not be ruled out if the price breaks above the mentioned DMA. Next, market participants could test the psychological $40k.