United Kingdom  

“News neutrality by unbiased coverage”
One News Page
> >

Bitcoin Price Analysis: Shaky Support Gives Way to Massive Bear Flag Set-up

Bitcoin Magazine Thursday, 21 June 2018
Bitcoin Price Analysis: Shaky Support Gives Way to Massive Bear Flag Set-upA sideways market has many bitcoin investors wondering if the downward volatility has finally subsided. As stated in our previous discussion of the bitcoin market, the $6,425 support level was a very important level to hold. A failure to maintain support at that price level would undoubtedly cascade the market into a test of deeper support values. Fortunately, the week started off with a decent bounce off the support level:Figure 1: BTC-USD, 1-Day Candles, Support LevelAlthough the volume was not the best, the price managed to rally decently on a fairly wide spread. Currently, the price seems to be bound within a pseudo-trading range of sorts where it is meandering around, testing both support and resistance. Right now, it’s unclear whether this trading range is an accumulation or redistribution trading range, but it beginning to take form as the price ping-pongs around:

Figure 2: BTC-USD, 2-Hour Candles, Current Trading Range

At this moment, there is no discernable volume trend that would hint toward accumulation or distribution, which, for me, puts this in a no-trade-zone. If we zoom out to a higher timeframe, there is a strong argument that, because we broke out of such a prolonged symmetrical triangle, this is actually stepping-stone redistribution that will ultimately lead to a continuation of the down trend. We could even argue that current trading indicates a pretty sizeable bear flag:

Figure 3: BTC-USD, 12-Hour Candles, Bear Flag

This current trend has all the hallmarks of a bear flag: consolidating volume, a weakening upward trend and a downtrend that leads into the consolidation pattern. A flag of this magnitude would have an approximate measured move of $1,700 in the downward direction — an ultimate destination in the mid $4,000s.


1. The current market trend has managed to find support on the prior lows.

2. However, the support seems to be on shaky ground as it is current trending in a pattern known as a bear flag.

3. If the market manages to break out of this bear flag, we could reasonably see a test of the mid $4,000s.

Trading and investing in digital assets like bitcoin and ether is highly speculative and comes with many risks. This analysis is for informational purposes and should not be considered investment advice. Statements and financial information on Bitcoin Magazine and BTC Media related sites do not necessarily reflect the opinion of BTC Media and should not be construed as an endorsement or recommendation to buy, sell or hold. Past performance is not necessarily indicative of future results.This article originally appeared on Bitcoin Magazine.

You Might Like

Tweets about this

Other recent news in Markets

WCM Global GROWTH Fund offers exposure to overseas GROWTH stocks with growing moatsNew Crypto Exchange Aims to Become Leading Platform in EUROPE by 2020
RUSSIA: CBR to keep its Key Rate on hold at 7.25% - TDSWhy Pivotal SOFTWARE Stock Plunged Today

Recent related videos

Support Your Local Labor Unions With This Handy Online Tool [Video]Support Your Local Labor Unions With This Handy Online Tool

LifeHacker reports a recent Gallup poll shows most Americans support unions. But Americans can do more to support labor unions besides not crossing picket lines. One easy way to support unions is by..

Wochit -   00:49

Bitcoin Has Baffling Drop [Video]Bitcoin Has Baffling Drop

Markets Insider Bitcoin dropped sharply, falling $500, or about 5%, in just over an hour. Other cryptocurrencies fell even more sharply, with ether and Ripple's XRP both losing about 12%. You can track..

Wochit Business -   00:49

Pak-backed Khalistan secessionists assault DSGMC chief, yet again [Video]Pak-backed Khalistan secessionists assault DSGMC chief, yet again

Yuba City (USA), Aug 30: Rattled at the massive moral defeat it suffered at the Trafalgar Square in London, Pak-backed ‘Sikhs for Justice’, a pro-Khalistan organisation has stooped as low..

News unlimited -   04:04

Southwest Yanks The Leash On Emotional Support Animals [Video]Southwest Yanks The Leash On Emotional Support Animals

Reuters reports Southwest Airlines has changed its policy towards emotional support animals. Now, only dogs and cats will be allowed on its flights--and one per passenger. The emotional support animal..

Wochit News -   00:39

Environmentally friendly: One News Page is hosted on servers powered solely by renewable energy
© 2018 One News Page Ltd. All Rights Reserved.  |  About us  |  Disclaimer  |  Press Room  |  Terms & Conditions  |  Content Accreditation
 RSS  |  News for my Website  |  Free news search widget  |  Help  |  Contact us  |  DMCA / Content Removal  |  Privacy & Data Protection Policy
How are we doing? Send us your feedback  |   LIKE us on Facebook   FOLLOW us on Twitter   FIND us on Google+  •  FOLLOW us on Pinterest