Some investors may have been feeling nervous as Bitcoin fell below $80,000 on Tuesday. However, the decline was rather short-lived and $BTC price rebounded from the top of its bear flag and reclaimed the key horizontal support of $80,000. Is this the extent of this period of negative price action, or could there be more to come?
The bear flag trend line holds the price of BTC to $
source: TradingView
As we can see in the short-term time frame,… Bitcoin price in dollars fell from Bull bannerand also struggled to hold key horizontal support. However, from the bulls’ point of view, the star of the show was the bear flag’s upper trend line. This was also broken, but the price quickly regained this trend line and has since returned to try to hold above the key support level and try to re-enter the bull flag.
It may be possible to draw a bull flag differently with a lower trend line. This includes the most recent price action and provides a lot of fluctuations, making this triangle the healthiest pattern.
Up or down from here? There could be further touches on this lower trend line, but with the bear flag trend line rising to a level similar to the main horizontal level, these two supports should be strong enough to prevent any candle bodies from falling below them. The Stochastic RSI indicators recently touched bottom and are on their way up. Upside momentum is likely.
The royal battle begins
source: TradingView
On the daily chart it can be seen that Bitcoin price in dollars The pair is still trying to consolidate above the main support level and the top of the bear flag. This probably won’t be a long process given that The 200-day simple moving average is moving quickly on price actionpressing it into a narrow space with the main supports underneath.
Something has to give. The 200-day simple moving average is a very difficult view to cross, and it is one of the main factors that tells us whether this market is bullish or bearish. Bull market above.
Below the price is a major support and above is a bear flag. While another thing to take into consideration is that momentum is currently on the upside.
The green circle is where this battle royale will take place. By the time the price action leaves this circle, we should have a good idea of its direction.
A waiting game on the weekly time frame
source: TradingView
On the weekly time frame, waiting is the name of the game. Less than halfway through the week, anything can still happen. Right now, the bulls have the upper hand regarding the short to medium term outlook. Main support continues, Relative Strength Indicators: Stochastic is at the top of its range, and there is a breakout of the Relative Strength Index (RSI) above the downtrend line.as shown by the green circles.
Will this remain the case until the end of the week? Only time will tell.
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.
