Bitcoin price fell below major support and returned to its bear flag on Wednesday. Is this the first sign of an impending collapse back below the bear flag, or is this just a healthy pullback before BTC price returns to $82k?
Triangle Pattern Failure – Little Bear Flag Formation?
source: TradingView
Time frame is 4 hours Bitcoin price in dollars It teaches us that short-term traders and investors need to be very careful going forward. The triangle pattern has failedThis was a bullish continuation pattern, so not good news for long trades.
Adding to the problem is that the price fell not only below the key horizontal support level at $80,600, but also to the bear flag level. After such a tough battle to get past these two strong resistances, it will be difficult for the bulls to find the price back inside the bear flag again.
One other reason for concern is that since Wednesday’s big drop from $81k to just under $79k, the price action has started to form a potential small bear flag with the price falling sideways. If the upward momentum indicated by the Stochastic RSI does not carry the price back above the top of the bear flag and what is now major resistance before the indicator lines reach the top of its range, the next loss of momentum could help the price drop much further down into the bear flag.
Confirm trend line break?
source: TradingView
The daily chart is also worrying the bulls. And also retreat inward Bear flagthe Bitcoin price in dollars Break below the trend line that goes back to the beginning of this rally. Also, after retesting the horizontal support at $78,000, the price appears to have turned back higher to confirm the breakout. If the bulls needed a quick rally around $2,000, this is it now.
Finally, at the bottom of the chart, the Relative Strength Index reveals this The indicator line fell back below the downtrend line again. Could a bigger fall happen now?
A fake operation is about to happen?
source: TradingView
The weekly chart shows that with just over 3 days left before the weekly candle closes,… Bitcoin price in dollars He is Below the main horizontal resistance. If the candle closes here, a false breakout will be the result, and with the Stochastic RSI indicators in this time frame about to roll over and pull back, the bulls may have missed a major breakout opportunity.
The RSI below the chart shows that the indicator line may be ready for confirmation Breakout above the downtrend line. However, if the indicator line continues to fall, the result may be another false breakout to match the one in the price action.
Things are starting to heat up, and the bears may be starting to lick their lips. Can the bulls still launch a late attack, or is this the first step as the bulls reassert their stranglehold?
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.
