Bitcoin could soon succumb to more selling pressure after brief period of consolidation, if this pattern plays out
BitcoinAccording to Jake Wujastik, Vice President of Strategic Development at TrendSpider, the leading cryptocurrency by market capitalization has formed a bear flag pattern on its four-hour chart.
The aforementioned candlestick chart pattern, as its name suggests, consists of a flag and a flagpole.
Bear flags are usually formed during consolidation phases that are followed by a significant rally.
The flagpole represents a series of higher highs and higher lows that are formed within a consolidation channel. The pattern is then formed if the price breaks below a newly established support level. Such a formation indicates that bears are stepping up selling pressure after a brief consolidation phase.
However, it should be noted that if the consolidation phase goes on for too long, the bears could lose their momentum.
Bitcoin recently suffered devastating losses due to the FTX disaster, plunging to a two-year low of $15,632 on Wednesday. On Thursday, however, the largest cryptocurrency rebounded sharply after the most recent consumer price data (CPI) data surprised to the downside. The U.S. stock market saw a blowout rally after cooler-than-expected inflation substantially increased the odds of a much-awaited Federal Reserve pivot.
While macroeconomic data paints a bright picture for riskier assets, the price of bitcoin remains on the ropes amid the crypto industry’s worst crisis in years. sudden fall of ftx Empire remains a major bearish headwind.
Earlier today, Bitcoin retraced back below the $17,000 level, currently trading at $17,311. #Bitcoin Price Prediction
