Analyst James Stanley claims that with the most recent price decline, the price of Bitcoin has established a negative channel.
This comes after earlier on Wednesday, the price of Bitcoin very nearly fell below the $60,000 mark.
https://x.com/JStanleyFX/status/1770463825893966228?s=20
What’s a bear flag?
A common trading pattern that usually indicates the continuance of a decline is the bearish flag.
When the price of Bitcoin fails to show a sustained upward trend, bears get eager to drive the price down and the price becomes stuck between two parallel trend lines.
It is important to remember that this pattern is not perfect and might be invalidated by an abrupt shift in the price trend. If the period of consolidation drags on for an excessively long time, sellers may eventually lose steam. The bulls would be able to continue the upswing in that scenario.
The largest cryptocurrency’s four-hour chart has verified a bullish divergence, according to well-known cryptocurrency trader Scott Melker. This may indicate that purchasers are at last prepared to make an offer.
https://x.com/scottmelker/status/1770458131652280574?s=20
The silver lining
Stanley says there is still some chance for the bulls. According to him, there is “a tone of bull flags” in the wake of Bitcoin’s sharp rise to all-time highs. This indicates that there is still support for the upswing, which has been sustained by historically high inflows into Bitcoin exchange-traded funds (ETFs).
According to CoinGecko statistics, the price of Bitcoin hit an all-time high of $73,737.94 last week.
The biggest cryptocurrency, nevertheless, has subsequently lost a lot of its gains, falling as low as $60,913 early today.
The price of Bitcoin was able to recover some of its losses earlier today. It is trading at $64,599 at the time of writing.
