Bitcoin Price Analysis: BTC/USD flag pattern signals return to $5,000


  • Bitcoin price failed to break above $7,000 during the recovery on Friday; bulls now struggle to hold above short term $5,800 support.
  • Technical levels and the formed bearish flag pattern hint that BTC/USD is doomed to return to $5,000 in the coming days.

Bitcoins price staged a recovery on Friday last week where it closed in on $7,000. However, the anticipated jump above $7,000 failed to materialized, allowing the sellers to get back into the driver seat. Over the weekend, Bitcoin continued with the retreat under $6,000. At the time of writing, BTC/USD is trading at $5,852 following a 5.53% loss in the last 24 hours and a 0.48% gain on the day.

Selling pressure is still high in the crypto market amid skepticism that recovery is possible. However, a semblance of stability means that volatility levels witnessed in the past two weeks are unlikely to reoccur.

Bitcoin price recovery has been very erratic in the last couple of weeks. $7,000 has come out as the key seller congestion zone while $5,000 is the key support. If declines continue under $6,000, $5,500 will provide immediate support.

BTC/USD remains bearish both in the short term and medium term based on technical indicators and chart analysis. The formation of the bearish flag pattern hints that a return to levels around $5,000 is possible. In addition to that, the 50-day SMA possible slide under the 200-day SMA means that the sellers will remain relatively control in the coming days, perhaps weeks.

BTC/USD daily chart
BTC/USD price chart

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.

Cryptos feed

Latest Crypto News & Analysis

Editors’ Picks

Bitcoin Price Forecast: BTC/USD next critical breakthrough is eyed at $7500

Bitcoin price is trading in positive territory, up 1.05% in the second half of the session. BTC/USD is being capped for the time being by a barrier at $7500. The price has been consolidating near-term, following the critical $7000 breakthrough. 

More Bitcoin News

Ripple Price Analysis: Intraday price action holds at 0.20 but only just

Ripple is looking good at the moment as the market continues to make higher highs and higher lows. It seems like the bulls are in a fight to keep the price above 0.20. Looking at the black resistance ...

More Ripple News

Ethereum Price Analysis: Next stop 200.00

Ethereum is trading higher today as more bullish sentiment kicks in. Most of the crypto majors are trading higher as the whole space enjoys a good run.  Looking at some technicals now, the price is trading above the 55 and 200 4-hour moving averages which is also a good sign. 

More Ethereum News

LTC has consolidated in the mid 40's as we await the next move

Litecoin has had a great run and now the price has consolidated somewhat. The price has started to make some lower highs along with some higher lows. This then creates a triangle pattern and the market must now wait for a break for clues to the future direction. 

More Litecoin News

BEST CRYPTO BROKERS/EXCHANGES

Bitcoin Weekly Forecast: BTC breaks its ties with stocks, strives to return its safe-haven status

Most part of the week Bitcoin has been on the recovery path. Slowly but surely the coin left $6,500 behind and even tested waters above $7,000.

Read the weekly forecast

BTC

ETH

XRP