Hello everyone, welcome to the endless bottom Bitcoin saga. For today's episode, BTC on the four hour chart, we can see a bear flag forming after the support line was broken 48 hours earlier at $9,200 and dropped to a 30 day low $7,650 on some exchanges well below the 61.8% FIB retracement line.
Another bear flag forming in a downward trend seems to be a seven day trend with BTC. The 50 EMA is slowly pushing resistance lower and is now hovering around $8,900. The MACD is also ready to crossover once again indicating a swing back towards bear control. Considering we're still in a bear market, trading this bear flag is very risky. Wait for a pattern to break, but don't hold your breath looking for the resistance trend line to break.
It's very reasonable to expect BTC to break the support trend line on the bear flag and test new 30 day lows at the 78.6% FIB retracement level. This would place BTC around the $7,200 range.
BTC is well on its way to forming a double bottom as the bears continue to force the bulls lower and lower. But is that the low??? We'll soon find out