Despite bitcoin’s modest recovery in the last few days, according to Transfero’s technical analysis, the downtrend is still going strong; the Bearish Channel figure formed in the chart above reinforces the downward movement.
“Thus, we realize that the support at US$ 37.5 thousand becomes vital for a possible reversal of the trend. If there is a breakout with volume, the price of BTC can start a new bullish series”, pointed out the Transfero team.
In addition, another aspect reported by the experts is that bitcoin’s volatility has been decreasing quite a bit, as per the chart below. This indicates a sign that the correction has been losing strength and, if the channel is not broken, we may be entering a period of “lateralization” of prices.
As explained by the analyst team at Transfero, a Bearish Channel is formed by two lines, one of which connects the bottoms of the series, while the other, in parallel, connect a sequence of tops. According to the experts, the slope of the channel is downward, thus highlighting its bearish trend.