According to crypto analyst Akash Girimath, the price of leading crypto Bitcoin (BTC) is showing a bear flag fractal formation on the lower time frame. The analyst states that a weekly break below the psychological level of $30,000 will help the bears’ situation more. If the leading crypto manages to break above $52,000, the macro bearish view could be invalidated. We have prepared Akash Girimath’s Bitcoin analysis for our readers.
“Bear trend is waiting for BTC around the corner due to fractal formation”
Bitcoin price forms a fractal, which shows that the bear trend is around the corner. This new development further strengthens the macro bear thesis for BTC. Bitcoin price confirmed a bear flag setup as it broke the lower trendline of the formation on May 6. At the same time, this move triggered a 36% crash in one week.
A zoom out (viewed from afar) shows that BTC’s drop from an all-time high of $69,000 to $32,837 between November 10, 2021 and January 24, 2022, forms the flagstaff of the model.
“The model predicts a 30% drop for Bitcoin”
As you can see from the news of Kriptokoin.com, after this flash collapse, the Bitcoin price was 14 Between January and May 22, it consolidated into higher lows and higher peaks, forming an ascending parallel-like structure known as the flag.
This technical formation predicts a target of $18,179, which was confirmed the moment BTC price fell below $38,305. So far, Bitcoin price has stopped selling to consolidate the psychological $30,000 level. A daily candlestick near this support will likely trigger more declines to the $20,000 target.
While this pattern has been around for quite some time, the recent consolidation seems to have set up another bear flag that predicts a 30% drop to the same target of $20,000.
“This is due to the invalidity of the macro bear thesis for Bitcoin”
This fractal formation further confirms that an eventual decline in Bitcoin price seems likely. Also, the development opposes the possibility of a relief rally to $35,000 or higher. Therefore, investors need to be careful as BTC consolidates without any directional bias in the game.
BTC 1-day chart While things look bleak for bitcoin price, an increase in buying pressure pushing BTC towards $35,000 will invalidate the smaller bear flag. From a macro perspective, if major crypto bulls push the leading crypto to produce higher above $52,000, this will invalidate the macro bear thesis. In such a case, BTC price could rise even higher and perhaps retest its all-time high of $69,000.
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