Technical Analysis Suggests Further itcoin">Bitcoin Downside Ahead
itcoin">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 itcoin">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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