Bitcoin sits on the lower end of a rising flag, the breakout of which could result in more than 18% lower. Indeed, the price of the king is at a critical point. So, a decisive move for the next few days will determine the next course of action for the crypto markets. Then, from a perspective unbiased by the BTC trend, other tokens like Ethereum and Ripple look set to rebound.
Bitcoin (BTC): a drop after the breakout of the rising flag down?
Over the past two days, Bitcoin price has just tested the lower line of the bear flag. Basically, this chart pattern should result in a decline of 18%. But it will be on one condition: that the price closes below the lower flag line. Then, the return to a resistance level will be the confirmation.
However, a slight uptrend should occur in Bitcoin before the breakout of the Ascending Flag. Indeed, it could be that the price makes a slight rise towards $20,150 or $20,735. Moreover, the RSI is also bouncing off the 43-46 support level. This is happening for the fourth time in less than two weeks. Therefore, a slight increase is highly likely.
A break of the Rising Flag down could cause Bitcoin to drop towards the lows at $17,593. If the bears continue to gain strength, the expected target at $15,800 should be met.
On the other hand, the price of this crypto might also break the resistance of $20,737. In this case, the bearish forecast will be invalidated. Thus, we could see Bitcoin at $22,000 or at $23,473.
The key levels to monitor
We have one level to watch if Bitcoin price breaks the flag down: the June 18 low at $17,593. Since this is a never-before-revised low, it is therefore an ideal level for bulls to place buy orders. However, large wallets always tend to buy below a low due to the huge liquidity there. Thus, it will be necessary to be attentive when the price breaks this level since it could be a false breakout followed by a bullrun.
In a bullish scenario, the price of Bitcoin could hit $21,600 after the flag breaks up. However, the zone between $20,559 and $22,200 is a major hurdle. By colliding on this zone, the price could return in a strong downtrend.
Receive a digest of news in the world of cryptocurrencies by subscribing to our new service ofdaily and weekly so you don’t miss any of the essential Tremplin.io!