Bitcoin falls by nearly 5% to $33,115 on the day
The latest drop sees Bitcoin post an hourly close below $34,000 for the first time since 13 January as previous dips had been quickly bought back up above $34,000 in recent days. That said, key support has not been breached yet.
Looking at the daily chart, Bitcoin appears to still be going through some consolidation after the recent pause upon hitting levels just above $40,000.
That is seeing a wedge pattern form with key trendline support holding closer to $33,560 with daily support also seen at the $33,000 handle. Meanwhile, key trendline resistance is seen closer to $37,959 for the time being.
With most financial charts, typically this means that we could be due for a price breakout either to the upside or downside - and one can argue that could be the case here as well.
A firm drop below the downside of the wedge and $33,000 will see sellers target $30,000 next and a break below that will sap a lot of the recent momentum.
Meanwhile, a firm push above the topside of the wedge will see price ultimately target $40,000 first before potentially getting to the record high close to $42,000.
Those will be key levels to watch for Bitcoin if you're looking to analyse things from a technical perspective at the moment.
