Bitcoin Bear Flag - What this means for Bitcoin's Future...
Hello Traders,
Today I will be discussing the formation of a Bear Flag and what this means for Bitcoin.
- As you can see on the chart BTC has been consolidating in an "Ascending" parallel channel since January.
1) An ascending formation is typically a Bearish signal.
2) In conjunction with the downtrend from the highs at $69K in November, this creates a bear flag.
- Now I'm sure some of you may be wondering... Well BTC consolidated last year in a channel before the massive pump to $69K, so won't Bitcoin do the same this time? - The answer is no.
- Last year Bitcoin consolidated in a "Descending" channel which is typically Bullish.
- As expected BTC pumped coming out of that Bullish consolidation.
- This time BTC has created a Bear Flag and has a much higher probability of continuing lower before hitting previous ATH's.
So what does this mean for BTC? Here are the 3 possibilities I see playing out..
1) (Highest Probability) BTC retests the $36K support level
2) (Medium Probability) BTC retests the $29K support level
3) (Lowest Probability) BTC retest the $20K support level.
I want to emphasize... Patterns have a certain probability of playing out. Bear flags have a relatively high probability of playing out and BTC has formed a textbook Bear Flag. This means the probability of BTC breaking down and even hitting $20K are still relatively high. Sometimes you have to zoom out and look at the bigger picture. I'm sure a lot of you will be discouraged by this, but think of how incredible it would be to accumulate BTC back at $20K!?
Good luck everyone and happy trading!
Today I will be discussing the formation of a Bear Flag and what this means for Bitcoin.
- As you can see on the chart BTC has been consolidating in an "Ascending" parallel channel since January.
1) An ascending formation is typically a Bearish signal.
2) In conjunction with the downtrend from the highs at $69K in November, this creates a bear flag.
- Now I'm sure some of you may be wondering... Well BTC consolidated last year in a channel before the massive pump to $69K, so won't Bitcoin do the same this time? - The answer is no.
- Last year Bitcoin consolidated in a "Descending" channel which is typically Bullish.
- As expected BTC pumped coming out of that Bullish consolidation.
- This time BTC has created a Bear Flag and has a much higher probability of continuing lower before hitting previous ATH's.
So what does this mean for BTC? Here are the 3 possibilities I see playing out..
1) (Highest Probability) BTC retests the $36K support level
2) (Medium Probability) BTC retests the $29K support level
3) (Lowest Probability) BTC retest the $20K support level.
I want to emphasize... Patterns have a certain probability of playing out. Bear flags have a relatively high probability of playing out and BTC has formed a textbook Bear Flag. This means the probability of BTC breaking down and even hitting $20K are still relatively high. Sometimes you have to zoom out and look at the bigger picture. I'm sure a lot of you will be discouraged by this, but think of how incredible it would be to accumulate BTC back at $20K!?
Good luck everyone and happy trading!