Bearish Flag Squeezes Bitcoin

Bearish Flag Squeezes Bitcoin, Break Lower to 53,000 Area on the Cards. Bitcoin’s (BTC/USD) price has been stabilizing within a negative triangle shape over the previous week. Support in the mid-55,000 range has been holding the price movement steady on the downside. Despite recent gains, a downtrend connecting the lows of November 10th and 12th. As well as highs of November 16, 18, 20, 21, and 22nd has been limiting the upside in recent weeks.

The market action has been squeezed as a result of BTC/continued USD’s printing of lower highs. Sespite support in the 55,500 level remaining solid. When it comes to bearish triangles, it is common for them to be broken in the near term. And this is no exception. If such a breach occurs, bitcoin bearish will most likely aim for the next region. Of important support, which is slightly below 53,000. Which corresponds to the peak from early September.

But if the bulls hold firm

In contrast, if the bulls are able to prevent a break below the mid-55,000s. And instead force a break above the current negative trendline. A move back towards the 50-day moving average around 60,500 is expected. Already this month, the 50DMA has proven to be a critical level to monitor. Offering strong support to the price action on the 17th of November. Only to then act as firm resistance once the price action had broken. Lower on the 20th and then 21st of November.

The existence of the bearish flag 21DMA in the mid-61,000s, slightly above the 50DMA. Makes it even more difficult for the bulls to restore BTC. To its recent record highs of 69,000 even though they have been successful in the past. Beyond that, there is additional resistance in the form of the lows of the 10th and 12th of November. In the 62,000 range. A break above any of these levels of resistance may prove difficult in the immediate term. With bitcoin instead electing to consolidate within the 55,500-60,000ish zone. That it has recently carved out for itself.

A dip to the September low a buying opportunity?

It is legitimate to wonder whether our more bearish scenario. In which the descending triangle breaks to the downside. Ushering in a push lower to support around 53,00. Presents a buying opportunity for bitcoin when viewed in this light. After consolidating within a range for several months, Bitcoin (BTC) has begun to exhibit. The beginnings of an upward trend to the north of that range. Then retreated to test the top of the previous range. Before pressing upward once more to test the upper end of the previous range. Any reason to suppose that the pattern will repeat itself if Bitcoin goes back. Into the high reaches of the 41,000-53,000 range. That it traded in from August to early October, for example?

The 14-day Relative Strength Index for bitcoin, which is presently hovering around 40.00. Would most certainly go below 30.00 if BTC fell all the way back to approximately 53,000. According to the Relative Strength Index. This hasn’t always been the best short-term buy signal. But it has in the past been a reliable indicator that selling pressure is going to run out . Of steam and that trading conditions are about to turn more consolidation-oriented.

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