- Bitcoin price shows a continuation of the bear flag setup with no signs of invalidation yet.
- A daily candlestick close above $19,516 will be the first sign of a bullish resurgence.
- If buyers manage to flip the $20,737 barrier into a support level, it wil invalidate the bearish outlook.
Bitcoin price shows clear consolidation over the weekend with no volatility. However, with the Asian session waking up, things might start to get a little dicey as BTC lingers after a bearish move.
Bitcoin price in no man’s land
Bitcoin price action between September 13 and October 10 created a bear flag, which is a bearish continuation pattern. However, on October 10, the bears won the month-long struggle and sliced through the said pattern, creating a daily candlestick close below the pattern.
This bearish move, combined with the Consumer Price Index (CPI) announcement on October 13, knocked Bitcoin price down by 7.7% to $17,917. However, the recovery was quick, which pushed BTC up to close the day on a bullish note.
Although October 13 was volatile, to say the least, the next day undid a portion of the gains as Bitcoin price moved into the weekend.
Going forward, there are two important things that need to occur for Bitcoin price to flip bullish:
- Bitcoin price needs to overcome the 30-day Exponential Moving Average (EMA) at $19,516.
- Beyond conquering the 30-day EMA, BTC needs to flip the $20.306 to $20,737 resistance area.
If these two events occur with a strong daily close, Bitcoin price could kick-start a run-up to $22,048 and rebalance the Fair Value Gap (FVG), aka inefficiency.
Although it is too early to forecast, Bitcoin price could retest the $25,000 psychological level if it can overcome the blockade around $22,000.
BTC/USDT 1-day chart
While things are pessimistic due to last week’s move, investors need to be cautious of the bear flag setup, which forecasts a 12% downswing to $17,088. This target is obtained by measuring the flagpole, which is the price action between September 10 and 16 and adding it to the breakout point at $19,417.
From a macro perspective, a breakdown of the June 18 swing low at $17,593 could trigger a dire case scenario that could plummet Bitcoin price to $15,500. While this outlook seems too bleak for some market participants, investors need to at least prepare themselves for a sweep of $17,593 for the week.
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. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended Content
Editors’ Picks
Crypto traders brace for short-term volatility with $2.4 billion options expiry on Friday
Bitcoin and Ethereum options market looks bullish on Friday, according to data from intelligence tracker Greeks.live. The firm said it has identified two Bitcoin calls that show an underlying bullish sentiment among market participants.
XRP recovers from week-long decline following Ripple’s response to SEC motion
Ripple filed a letter to the court to support its April 22 motion to strike new expert materials. The legal clash concerns whether SEC accountant Andrea Fox's testimony should be treated as a summary or expert witness.
Lido adds 4% gains as protocol rolls out first step towards decentralization
Lido takes the first batch of simple DVT validators to live, a step taken to decentralize the protocol. Lido leveraged technology to expand the protocol to multiple node operators, inviting both solo and community stakers.
Bitcoin Weekly Forecast: Should you buy BTC here? Premium
Bitcoin (BTC) price shows signs of a potential reversal but lacks confirmation, which has divided the investor community into two – those who are buying the dips and those who are expecting a further correction.
Bitcoin: Should you buy BTC here? Premium
Bitcoin (BTC) price shows signs of a potential reversal but lacks confirmation, which has divided the investor community into two – those who are buying the dips and those who are expecting a further correction.