Technical Analysis Suggests Further Bitcoin Downside Ahead
Bitcoin’s price continues consolidating in depressed ranges, but several technical and historical setups suggest further downside may loom for BTC in the coming months.
BTC has been stuck trading between $26,670 resistance and $25,650 support since mid-August. This range resembles a bear flag pattern, which typically resolves downward by the height of the previous downtrend – implying a potential 15% drop to around $23K.
Additionally, BTC failed to break above a key Fib level needed to confirm a bullish recovery based on historical fractals. This raises chances of retesting established bear market support near $23K as well.
Meanwhile, BTC creeps closer to a death cross of its 50 and 200-day moving averages. Past death crosses during rate hikes preceded 17-18% declines – pointing to another possible dip to around $21,750 for Bitcoin.
So while BTC has stagnated recently, multiple bearish technical factors suggest the calm may precede another leg down. Bulls need a decisive move above $28,350 resistance to invalidate the building’s bearish momentum.
Until then, caution remains warranted given the array of indicators pointing to levels as low as $21K should negative technical patterns play out. Patience and protective setups are key amid the volatile backdrop.
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