Bitcoin’s 9-week stay inside the bear flag may be coming to an end. There is potential for another week inside the flag, but with the bear market trend line weighing on the BTC price, the space is quickly running out, and either the bulls will force a breakout, or the bears will tighten their grip.
$BTC closes at the 7-month trend line
source: TradingView
The short-term time frame chart above shows that Bitcoin price in dollars It is trying to maintain support above the $71,400 level. If that happens, the climb will be very short Bearish market trend lineJust beyond that is the strong horizontal resistance level of $74,000.
The question is not whether the price will reach the downtrend line and retest it, but whether the bulls can maintain the momentum when the price gets there. Now that we have entered the seventh month of this downtrend, we must see if now is the time to break the downtrend and start Bitcoin climbing again.
A big step is being built
source: TradingView
The daily chart shows the two bear flags, and how close they are Bitcoin price in dollars It is a retest of the bearish market trend line. However, it can also be observed that even if the trend line is broken, the bearish flag remains active until the price crosses the $80,000 level.
At the bottom of the graph, the volume decreases. This probably means that there is a big step in the making. In the Relative Strength Index, The indicator line remains below the downtrend line. Either rejection or a breakthrough is brewing. This has become a very close call.
$BTC is about to breakout on the weekly time frame
source: TradingView
Shows the weekly chart Bitcoin price in dollars Practically at the end of the bear flag, at least as far as the bottom is concerned. If we compare the two flags now, we will find that both are 10 weeks old. In fact, the price had already fallen below the first bearish flag at this time. With 3 days to go, the price in this current bear flag is looking to head in the opposite direction. Will this still be the case when the weekly candle closes next Sunday?
There seems to be potential for another candle in this bear flag, but if the bulls can hold the price around this level for Sunday’s close, the next candle will open on the other side of the down trend line, giving the bulls a real boost.
The RSI on this higher time frame is a more reliable guide, and it shows The indicator line is well above the downtrend line. This preparation will also need to continue until the end of Sunday. See how the price rose each time the downtrend line was previously broken.
Disclaimer: This article is provided for informational purposes only. It is not provided or intended to be used as legal, tax, investment, financial or other advice.
