On the other hand, if the price can close above the $37K level soon, the bearish breakdown would be considered false and could lead to recovery towards $40K.
On the 4-hour timeframe, the price has been forming a falling wedge over the past couple of weeks after getting rejected from the $43K area.
This fake breakout has led to a drop from the sizeable bearish flag, which has been forming over the last few months.
Meanwhile, the exchange reserve has been on a sharp decline over the past few months, as bitcoins have been regularly withdrawn from the exchanges.
This structure points out the lack of demand in the market considering the economic and geopolitical uncertainty around the world.