Bitcoin price, throughout the past week, maintained a significant uptrend after flipping from the lower support. Currently, testing one of the crucial levels from the last trading day, the asset may witness a slight pullback. These levels are also important because the resistance level around $41,900 is also the neckline for the formed double-bottom pattern. And hence a breakout may be imminent but wait, there’s a catch!
In the big picture, the BTC price in a weekly frame showcases a bearish breakout from the trend line. And hence if the asset slips from these levels, then witnessing a deep drain close to lower support may be imminent. According to one of the popular analysts, the Bitcoin price may also slip below $35,000 to hit $33,000 support levels, if failed to sustain.
On the other hand, the reserve balances on the exchanges have been depleting very hard for a long time. It had peaked just before the May 2021 crash which has surged from the lowest levels somewhere at the end of 2018. Currently, the balances on the exchanges are at similar levels that it was during November 2018. During a previous couple of times, the balance smashed these levels, rebounded firmly while the price kept depleting.
Therefore a huge possibility of the asset falling apart towards the lower support arises. As the balances on the exchanges are about to increase which is mainly due to excessive selling. Hence dragging the Bitcoin(BTC) price towards the lower support levels. If not acted in time the asset may revisit the $33,000 support very soon.