Bitcoin price analysis: BTC/USD bear flag pattern heightens the risk for more declines
|- Bitcoin support levels at $8,100 and $7,700 are vulnerable to declines as long as the bearish flag pattern stays in action.
- Short-term technical indicators suggest that the bulls are in control but correction above $8,400 would revive interest in Bitcoin.
Bitcoin price is still suffering the effects of breaking the falling triangle support as observed on the daily chart. Besides, the descending trendline resistance continues to limit movement to the north. Meanwhile, the massive drop from levels above $10,000 in September extends the press down on critical levels including $8,000 and the recent low close to $7,700.
The formation of a bearish flag pattern is likely to sabotage the progress made by the buyers over the last week. Although $8,800 rejected the price, Bitcoin has been able to stay above $8,000. A reaction to the flag pattern could revive the bearish frenzy and force Bitcoin down to levels at $7,000.
In the meantime, BTC/USD is trading at $8,145 amid shrinking volatility. The Moving Average Convergence Divergence (MACD) shows that the bulls have the upper hand and will be able to defend the short-term support at $8,100. The MACD’s positive divergence also shows that action to the north has potential.
BTC/USD daily chart
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