🔥 Bitcoin Still In A Bear-Flag: Difficult Times Ahead
Updated
Two days ago I made an analysis on BTC and the short-term bull-flag it was trading in. In hindsight, this analysis trade was initiated too soon and based on a too short time frame. Always remember to zoom out.
When zoomed out on a larger time frame it becomes clear that BTC is trading in a classic bear-flag pattern and rejected the top resistance of 22.5k. There's a high probability for BTC to fall back all the way to the bottom support of the bear flag. Assuming that we're just in a temporary pause between dumps, I wouldn't even be surprised if we fall right through the support of the bear flag and take a shot at 18k.
For now, we're trading right at the triangle's blue resistance (now functioning as support). With stocks dumping I'm not counting on this support to hold, but you never know.
The real trend will be determined tomorrow by the new US CPI data. If inflation goes below 8.6% we can expect a big move upward, if CPI is higher than 8.6% it would mean that inflation is still accelerating, with more bearish price action as a result.
When zoomed out on a larger time frame it becomes clear that BTC is trading in a classic bear-flag pattern and rejected the top resistance of 22.5k. There's a high probability for BTC to fall back all the way to the bottom support of the bear flag. Assuming that we're just in a temporary pause between dumps, I wouldn't even be surprised if we fall right through the support of the bear flag and take a shot at 18k.
For now, we're trading right at the triangle's blue resistance (now functioning as support). With stocks dumping I'm not counting on this support to hold, but you never know.
The real trend will be determined tomorrow by the new US CPI data. If inflation goes below 8.6% we can expect a big move upward, if CPI is higher than 8.6% it would mean that inflation is still accelerating, with more bearish price action as a result.
Note
Edit: CPI is Wednesday, not tomorrow.
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