The king of cryptos is in the process of erasing all the rises made in the past week. In a red start to the week, bitcoin has already lost 7% since Monday. This bearish climate could continue until the end of the year. Indeed, a next wave of depression could arise, potentially driving bitcoin to $12,300. Check out this analysis.
Bitcoin (BTC): a repeating bearish pattern
In month x a bearish pattern appeared on the course of bitcoin. This is a descending triangle that lasted a few weeks. This figure was followed by a 43% drop. Which brought BTC back below $20,000. But before this plunge, the price made a false break from the upper right, making a 13% rise. What if this bearish pattern is currently repeated on bitcoin?
Indeed, the same configuration seems to be reproducing currently on bitcoin. This crypto recently achieved a bullish performance of 13%. A run that started from the September low, all the way to last week’s high. With this move, bitcoin price broke through the upper part of the triangle, which is also a 5-month-old trend line. If this triangle will produce the same effects as that of May 2022, we could envisage a fall of 43% on BTC. The breakage of the upper part, would it be a fake? breakout »? If this is the case, we can consider a wave of depression for the next few days. Which will drive the bitcoin price close to the $12,300 level.
The price could rebound
However, there is a chance that the price will bounce off the $19,000 support. This is also the lower part of our famous Bitcoin bearish triangle. If the rebound takes BTC above $21,440, it will invalidate our bearish thesis. In this case, we could envisage a breakout of the swing point at $22,800. After that, the next hurdle is found a bit further at $25,000.
In short, we will have to be very attentive to the reaction of the price on the lower part of the triangle. If bitcoin closes a daily candle below this level, it will confirm the depression wave. If a candle hammerWhere dojiforms near this level, this will invalidate the bullish scenario.
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