The $BTC price has fallen through the mid-point of its bear flag and it looks to all intents and purposes that the price is going to head down to the bottom of the flag. Is there anything tha
The $BTC price has fallen through the mid-point of its bear flag and it looks to all intents and purposes that the price is going to head down to the bottom of the flag. Is there anything that can stop this slide from happening?
Source: TradingView
The 4-hour chart reveals a section of the bear flag and how a smaller descending channel guided the $BTC price back inside when a definitive breakout was beginning to look likely. Now the price has fallen out of that descending channel and has repeatedly been rejected from its bottom trendline, forming lower highs as it does so.
The third of these rejections has recently taken place and this has forced the price below the midpoint of the bear flag. A descent to the bottom of the flag now looks probable - more so than a climb back to the top of the flag. A lower low would put the price in the vicinity of the flag bottom. Eyes need to be on whether the horizontal supports from $76K down to $74K can hold.
Source: TradingView
Not only is the $BTC price falling below the midpoint of the bear flag but it also looks as though it could be about to take hold below the 50-day SMA as this moving average rises to converge with the 200-day SMA. If we look up at the previous bear flag it can be seen that the same thing happened shortly before the price crashed out of the flag, although the price then was already at the bottom.
The Relative Strength Index illustrates how the indicator line fell out of the ascending channel. Also it can be noted that the indicator line is potentially being rejected from the yellow RSI-based MA. This also points towards a price drop.
Source: TradingView
As the $BTC price starts to take hold below the midpoint of the bear flag, it rather looks as though we are just waiting for some more bearish momentum to the downside. The red candle that followed the slight fakeout of the top of the bear flag is an enveloping candle. This points to more downside just like it did when the same thing occurred when the price fell out of the previous bear flag.
Finally, if we look at the Stochastic RSI in this weekly time frame we can observe that the indicator lines are posturing to dip below the important 80.00 level. Unless there is a bounce from here, the indicator lines are very likely to keep on going all the way down to the 0.00 bottom limit. This will of course mean negative price action. It just remains to be seen just how far the price action will fall.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
