Bitcoin Bear Flag Breakdown in Play - Target $74k - $75kAnd this chart of Bitcoin we see the Bear Flag pattern playing out as forecast by the Red zigzag line a few weeks ago.
Price pushed up directly into the Red Cell Zone which are just visualizations of limit sell orders on the order books. Similarly, there are strong limit buy orders in the buy support green zone below around 84 to 85k.
But based on my prior study of the macro Head and Shoulders that likely will play out, even if we get it bounce here I do believe we will roll over and take out the buy support Zone below us and complete the Bear Flag measured move target down to 74k to 75k.
This will likely be the bottom, as Bitcoin is never gone below the price it was when a new incoming president won an election. 74k was a prior resistance level flipped as support and I expected to hold.
If it doesn't, then likely Bitcoin can head to 62k which would be the measured move on the macro Head and Shoulders in the prior study here.
In the meantime, lots of uncertainty in the markets, that could drive prices either way in the short term.
Today we have FOMC and although there is a 97% chance they do not cut rates, Powell's comments will be important and may move the markets depending on how hawkish or doveish he sounds.
With war tensions in the Middle East and Iran's escalatory language, Market participants are staying out as they don't like uncertainty.
On the other hand, hearing rumors that the US is buying Japanese yen to help prop up their currency and potentially start the money printer which would be bullish.
The DXY is also heading down, and if it breaks the 95 level then typically we enter another bullish phase as we saw in 2021.
Let me know your thoughts!
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