Turning bearish below 40,000: Crypto Index Analysis
Crypto Index analysis indicates that the cryptocurrency market is starting to weaken. Additional downside in Bitcoin could also be bearish for the entire crypto market.
The Crypto Index failed to stage a major breakout last week, as Bitcoin failed to break through the psychological $10,000 level.
Crypto Index analysis shows that heavy technical selling will take place if sellers hold price below the 40,000 support level.
Crypto Index medium-term price trend
The Crypto Index is starting to appear more bearish, following a heavy technical rejection from the 44,000 level.
Crypto Index technical analysis over the medium-term shows that price is trapped inside a descending price channel.
Failure to move price above the top of the channel last week has seen bears gaining back control of the index.
The bottom of the price channel is currently located around the 38,000 level. A move under the price channel could provoke a heavy sell-off.
The size of the pattern indicates that the index could fall towards the 32,000 level.
Crypto Index short-term price trend
Crypto Index analysis highlights that the index has a bearish short-term trading bias while the price trades below the 40,000 level.
The four-hour time frame currently shows that a bearish head and shoulders pattern has formed, following the recent rejection from the 44,00 level.
According to the size of the bearish pattern, the Crypto Index could fall towards the 36,000 level, at a minimum.
It is also noteworthy that Bitcoin has been coming under pressure recently, and a sharper price decline in the Bitcoin could cause the index to come under even greater downside pressure.
Crypto Index technical summary
Crypto Index technical analysis shows that the index could come under heavy downside pressure if the 40,000 level is broken. The 32,000 level is seen as a possible downside target.