Bitcoin is very close to falling down again. The price is right at the edge of a triangle and could be about to fall back to $60,000. Will Bitcoin make the drop? How far could it fall?
$BTC about to drop out of triangle?
Source: TradingView
The 4-hour chart for $BTC reveals a fairly precarious situation. The price is falling underneath the bottom trendline of a triangle, and although there is still time for the bulls to push the price back up, it isn’t currently looking good.
If the drop happens, the next support level is at $65,500, although the measured move out of the triangle could take the price below $60,000. There just does not seem to be any stamina where the bulls are concerned when it comes to pushing the price back up.
Extremely negative setup
Source: TradingView
The daily chart reveals that not all is lost yet. However, if the chart were turned upside down, we would be looking at a very bullish bull pennant. There wouldn’t be many who would be calling for that particular setup to breakdown. Therefore, as a bear pennant, a breakdown does look extremely likely.
Factor in that the $BTC price has recently lost major horizontal support, and the Stochastic RSI in the daily time frame is turning down, you have what looks like a recipe for more downside.
Huge tail to the downside provides some hope
Source: TradingView
In the higher time frame of the weekly, the tail down to $60,000 can still give the bulls some hope. This was quite some bottoming tail and in normal conditions a bounce back to the upside could probably be expected more often than not. Nevertheless, in the current environment back-filling the long tail down looks like a reasonably valid option.
Given that $53,000 is the full measured move out of the bear flag (in purple), this could be a possible target. That said, who knows when this will turn. A candle close back above $69,000 at the end of this week could turn the whole bearish mood around, but is this likely to happen?
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.