Bitcoin Price Analysis: BTC/USD big bad bear flag is eyed, another catastrophic drop of $1000 may be seen
|- Bitcoin price seen up with minor gains of some 1%, after a choppy session on Wednesday.
- BTC/USD price action the recent range-bound behaviour has formed a bearish flag pattern.
- Bearish flag pole is around $1000 from the top to the bottom for the pole, should the bears breakout, could force Bitcoin doing to the $5500 territory.
The Bitcoin price was seen holding minor gains in the latter stages of the session on Wednesday, after what has been a choppy day, with a lack of committed direction. BTC/USD narrowing range behaviour suggests of a potential breakout very soon.
BTC/USD has formed a bearish flag pattern, this has been taking shape since the 7th September, where the price has been ranging from lows of around $6100 to highs of $6600, a tight $500 range, in comparison to what was seen at the back end of August and start of September.
Technically, given the mentioned flag patter formation, it does suggest BTC/USD could be vulnerable to a breakout to the downside. If playing by the textbook, the flag pole of the bearish flag is around $1000 in value, which could see a $1000 drop, should the bears pick up momentum and cause a breakout to the downside. Near-term support eyed at $6200-100. Resistance to the upside seen at the upper part of the flag and current range, $6600.
BTC/USD 4-hour chart
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