Bitcoin has experienced two weeks of decline, and is currently trading below the bull flag. The markets are clearly in a state of panic right now, I think the Fed could restore some confidence in the market with an emergency rate cut to help stocks and crypto rebound. For now I’m waiting to see if Bitcoin rebounds back into the bull flag above $51.5k.
Major institutions are holding despite the selloff.
Bitcoin Remains Neutral as the Support Level Holds
BTC has rebounded back into the bull flag, and the price action is still neutral. This selloff could provide the liquidity needed for a strong rebound and rally. The price is neither bullish nor bullish until we see a convincing move in either direction. We quickly dropped from the upper range of the bull flag down to to the lower end. Now the momentum has shifted and we are trending back up. Altcoins will continue to be affected by these price swings and will get wrecked on any pullbacks so keep that in mind.
Shakeout Could Lead to Bullish Breakout
This shakeout has provided a significant discount across the market, and we could see a strong rebound as this dip gets bought up. This chart outlines the bullish scenario where Bitcoin continues to rally and forms a bullish breakout during this upswing. I am keeping an eye out for that potential scenario here. We have seen similar price action in past cycles, but it is taking significantly longer during this cycle.
$1.2 billion has been liquidated from the crypto markets during this flash crash.
BTC is holding within the bull flag despite the recent selloff. The price action is still neutral for now, I’m still optimistic for a bullish breakout above the bull flag. For now the price is still rebounding near the lows of the bull flag. I bought Altcoins on this dip and will wait to see how the price action looks over the next few days.
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