Bitcoin price analysis: BTC settles in a flag pattern, the breakdown is far from over
|- Bitcoin is trading within a flag pattern; a breakdown lingers.
- Technical levels are relatively positive but a catalyst will boost the bullish action above $8,100.
Bitcoin surrendered the $8,000 level on Friday following an unexpected bearish wave during the European session. While targeting $7,800 support, BTC formed a low around $7,825. The shallow recovery that ensued remained largely lethargic as the price tried and failed to break above $8,000.
Meanwhile, Bitcoin is settling in a flag pattern. A move that is likely to pave the way for more action towards $7,800 or even $7,400. The bearish flag pattern support is being tested at the time of writing. This continuation pattern could direct BTC/USD in a similar downtrend like the one yesterday.
For now, Bitcoin is exchanging hands at $7,930. The Moving Average Convergence Divergence (MACD) suggests that bullish pressure is still present. However, Bitcoin will require a catalyst to assault the congestion of sellers at $8,000 as well as the supply zone at $8,100.
BTC/USD one-hour chart
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