Bitcoin sits on the downside of a rising flag, and its breakout could lead to more than 18% lower. Indeed, the price of the king is at a critical point. Therefore, a decisive move for the coming days will determine the next course of action for the crypto markets. Then, from an unbiased view of the BTC trend, other tokens like Ethereum and Ripple look like they will come back.
Bitcoin (BTC): fall after breaking out of the flag rising down?
Over the past two days, Bitcoin price has just tested the lower line of the bear flag. Basically, this chart pattern should lead to an 18% decline. 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 a confirmation.
However, a slight increase in Bitcoin should occur before the breakout of the Rising Flags. In fact, the price may rise slightly 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 small increase is very likely.
A breakout of the Rising Flag could cause Bitcoin to fall towards the lows at $17,593. If the bears continue to gain strength, the expected target of $15,800 should be reached.
On the other hand, the price of this crypto could also break the $20,737 resistance. In this case, the bearish forecast will be invalid. So, we could see Bitcoin at $22,000 or at $23,473.
Key levels to monitor
We have one level to see if Bitcoin price breaks the flag: the June 18 low at $17,593. Since this is a low level that has never been revised before, it is therefore an ideal level for bulls to place buy orders. However, large wallets are always buying below low due to the huge liquidity. Therefore, it will be necessary to be careful when the price exceeds this level since it could be a false breakout followed by a bullrun.
In a bullish scenario, Bitcoin price could hit $21,600 after the flag breaks up. However, the zone between $20,559 and $22,200 is a major obstacle. A collision in this zone could cause the price to return to a strong downtrend.
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