A hawkish Fed. Rising bond yields. Concerns about Strategy (MSTR). Bitcoin already has a lot of work against this. Now, a worrying chart pattern adds to the uncertainty.
This pattern is called a bear flag, and a breakdown could send the price of the largest cryptocurrency down to $54,000 initially, according to pseudonymous trader Doctor Profit, who called BTC’s bull market peak of $126,000 and the subsequent sell-off.
“Bitcoin is now forming a huge bear flag on the daily time frame,” the trader wrote on
Drawn on a map, the pattern looks like a flag on an upside-down flagpole. Here’s how it works: an asset falls sharply then sees a rebound of relief. The slide represents the flagpole and the bounce becomes the flag. When the price drops below the lower end of the flag, the selling becomes more pronounced, with the downward movement being about the same magnitude as the initial decline.
