📉 #Bitcoin Price Pennant Pennant Predicament Could Sweep $40,000, Is This the Dip Before the Rip?🤔
Bitcoin price takes back gains accrued since the FOMC event on Wednesday. Support at $41,500 could pave the way for another swing higher to $44,000.
This announcement, highly welcomed by investors, triggered widespread rebounds, with Bitcoin briefly rising above $43,000.
Altcoins followed in BTC’s footsteps with some majors like Solana (SOL) and Cardano (ADA) posting double-digit gains. Although Ethereum price climbed higher, it quickly retraced from resistance at $2,300 to $2,236 at the time of writing
In Bitcoin’s case, a bearish pennant threatens to spur a drop to $40,000. Many traders are likely to have faced liquidation on their long bets to $45,000 and possibly $50,000.
However, the fact the uptrend weakened below $44,000 resistance could have been interpreted to signal a possible swing low before the next major breakout. At the same time, Bitcoin price slid below the 20 Exponential Moving Average (EMA) (in blue), reinforcing the short-term bearish theory.