In our previous Bitcoin analysis Bitcoin Ready For A Massive Move! Watch This Pattern, we talked about the converging triangle pattern and the potential breakout to the downside. That bearish prediction played out exactly but our bearish target of $26,801 was not met as the Bitcoin price was unable to break through the $28k support.
This bounce at the $28k support was a clear indication that the sideways market in the Bitcoin price was not over just yet. But right now, Bitcoin is giving us another chance to time the market.
In this Bitcoin analysis, we will be talking about the larger flag pattern playing out on the 30 min timeframe. We will be breaking doen what to watch out for and best entries!
The Ranging Market Continues!
After bouncing off the $28k support, Bitcoin is currently forming a larger flag pattern on the 30min timeframe. The way this pattern is playing out right now is very bearish in nature and there is a very high probability that we might see a price breakout and continuation to the downside in the coming days.
Bitcoin-ranging market and look for a sell trade back down to the $28k support and below.
This bearish flag pattern is very important to Bitcoin traders because it helps us effectively time the Bitcoin breakout when it finally happens. And that might be anytime soon!
Related Article: How To Short Bitcoin
Right now, Bitcoin is still trading within the flag pattern, in the coming days we want to see the price breakout of these coverging channels and start trending lower.
This would be the confirmation we need to sell the market back down to the $28k support and below. The standard target for this bearish pattern is the $21,939 price level.
But to remain very conservative in this period of heightened tension in the Bitcoin market, we can decide to manage our trade by:
- Booking some profits once price sells off to the $28k support
- Move our stoploss to breakeven and
- Then leave the rest to see if we keep selling to our bearish target
This way we can keep on booking small profits even though the $28k support continues to hold.
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