Published 49 mins ago
Bitcoin’s ongoing recovery rally initiated when the price bounced back from the $17708 low. Furthermore, this bull run shows new higher highs and lows within two ascending trend lines, indicating the formation of inverted flag patterns. Thus, in response to this pattern, the BTC price could witness another significant correction of 30-35% upon breakdown.
- Higher price rejection candles at $24000 indicate intense supply pressure
- The rising 20 and 50 day EMA’s may attempt to stall the possible retracement
- The intraday trading volume in Bitcoin is $26.2 Billion, indicating a 16.3% loss
The inverted flag is a bearish continuation pattern reflecting a possible breakdown as the price breaches the support trendline.
Previously, the BTC/USDT technical chart showcased this bearish flag during the first four months of 2022, which triggered a 30% fall. Moreover, the same pattern emerged in the Mid-May-to-June relief rally, which provoked a 40.5% drop.
As for now, the BTC price is wavering around the aligned resistance of $24000 and descending trendline over the past three days. The long-tail rejection attached to those daily candles indicates the buyers are exhausted, and thus, the price may witness another bear cycle within this pattern,
The expected pullback could tumble the BTC price 12-13% before it reaches the pattern’s ascending trendline. However, a breakdown from this support would resume the prevailing downtrend and slump the coin price below $17708 low.
On a contrary note, a possible breakout above the resistance trendline would accelerate the bullish momentum and invalidate the bearish thesis. Thus, the potential rally may even surpass the $26000 mark.
RSI indicator: the daily-RSI slope sustains above the neutral zone and 14-SMA despite weakness in price action, suggesting the market participants maintain a bullish bias.
Bollinger band indicator: Amid the current recovery, the BTC price showcased its third retest to the indicator’s upper band. The coin price experienced a minor pullback during the previous touches; therefore, the same is expected in the upcoming days.
- Resistance level- $24000 and $26000
- Support level- $22000 and $19000
The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.