Bitcoin ‘Bear Flag’ Pattern Shows A Scary Target As Coin Briefly Drops To $18k

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All the optimism of the summer months, when Bitcoin was able to rebound from $17k to $25k, has gone with the dollar strengthening and speculative traders exiting the crypto market once again. Yesterday the world’s biggest cryptocurrency fell below $19k for the first time since June and if the ‘Bear Flag’ pattern which is showing in the charts is correct, we could go much lower than that.

US dollar

It comes as cash (and then mostly the US dollar) is now forecasted to do better than stocks this year. Because of this, analysts are now forecasting both Bitcoin and several tech stocks to drop further.

The macro environment also continues to prove difficult with the dollar continuing to put in highs. This impacts all risk assets as we can see.

Vijay Ayyar of crypto exchange Luno said.

If we see the dollar start to move back down, then we should be able to get risk assets such as bitcoin move back up again.

Daily charts show a ‘bear flag’ pattern for Bitcoin.

⚠️BREAKING:

*CRYPTO MARKET CAP SINKS BELOW $1 TRILLION, #BITCOIN NEAR 2022 LOW pic.twitter.com/taTgtQzxB3

— Investing.com (@Investingcom) September 7, 2022

As bear flag can be spotted when the price consolidates higher inside a parallel, ascending range after a strong downtrend. In the case of Bitcoin the strong downtrend was seen as from the beginning of the year until the month of June, when Bitcoin fell as low as $17,000.

Since then, the world’s biggest digital currency had been able to reclaim some territory, but as of September it has been losing ground again. From a technical perspective, if the bear flag patter holds true, Bitcoin is poised to fall to $15,000.

#Bitcoin price is less than a third of when I did this news hit and I stand by every word. Things have only gotten worse but Bitcoin is now on deep sale for when central banks are forced to re-liquify markets. pic.twitter.com/8ZA6DEwjpc

— Natalie Brunell (@natbrunell) September 7, 2022

Podcaster Natalie Brunell said on Fox Business that:

Bitcoin is now on deep sale for when central banks are forced to re-liquify markets.

At the moment of writing, Bitcoin changes hands for $19,226.