could a next bearish wave arise?

The king of cryptos is in the process of erasing all the rises made in the past week. In a red start to the week, bitcoin has already lost 7% since Monday. This bearish climate could continue until the end of the year. Indeed, a next wave of depression could arise, potentially driving bitcoin to $12,300. Check out this analysis.

Bitcoin (BTC): a repeating bearish pattern

In month x a bearish pattern appeared on the course of bitcoin. This is a descending triangle that lasted a few weeks. This figure was followed by a 43% drop. Which brought BTC back below $20,000. But before this plunge, the price made a false break from the upper right, making a 13% rise. What if this bearish pattern is currently repeated on bitcoin?

Indeed, the same configuration seems to be reproducing currently on bitcoin. This crypto recently achieved a bullish performance of 13%. A run that started from the September low, all the way to last week’s high. With this move, bitcoin price broke through the upper part of the triangle, which is also a 5-month-old trendline. If this triangle will produce the same effects as that of May 2022, we could envisage a fall of 43% on BTC. The breakage of the upper part, would it be a fake? breakout »? If this is the case, we can consider a wave of depression for the next few days. Which will drive the bitcoin price close to the $12,300 level.

Bitcoin (BTC): could a next wave of depression arise?
Bitcoin (BTC): could a next wave of depression arise? – BTCUSD – TradingView

The price could rebound

However, there is a chance that the price will bounce off the $19,000 support. This is also the lower part of our famous Bitcoin bearish triangle. If the rebound takes BTC above $21,440, it will invalidate our bearish thesis. In this case, we could envisage a breakout of the swing point at $22,800. After that, the next hurdle is found a bit further at $25,000.

In short, we will have to be very attentive to the reaction of the price on the lower part of the triangle. If bitcoin closes a daily candle below this level, it will confirm the depression wave. If a candle hammerWhere dojiforms near this level, this will invalidate the bullish scenario.

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The Cointribune Editorial Board

The Cointribune editorial team unites its voices to express itself on topics specific to cryptocurrencies, investment, the metaverse and NFTs, while striving to best answer your questions.

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