Bitcoin is Wavy and BTC Prices Trapped in a Bear Flag, Support at $28.7k

Bitcoin is Wavy and BTC Prices Trapped in a Bear Flag, Support at $28.7k

Bitcoin prices are wavy at spot rates, moving with an unclear trend in the short term.

Although the primary trend is bearish–since bulls have failed to push the coin above key reaction levels– traders are optimistic, expecting refreshing recoveries following sharp losses from early this year.

At spot rates, BTC prices are down over 50 percent from the $69k peaks of Q4 2021. Even so, the resilience of bulls and the failure of bears to force the coin below the bear flag to new 2022 lows is a net bullish.

Institutions Are Doubling Down on Bitcoin

Thus far, bullish sentiment stems from institutional capital flows. As central banks realign their monetary policies to prioritize taming raging inflation, the financial markets, months propped by free cash, are bearing the brunt.

The coin is under pressure and risks caving in. Still, institutional confidence is a fact that could shift sentiment and build a bullish case in the medium term.

A Coinshares report reveals that institutions have been doubling down on Bitcoin, buying $500 million of the asset since the beginning of the year. Of this, roughly $126 million have been invested in Bitcoin ETPs. This derivative tracks the spot performance of the digital gold.

Bitcoin Price Analysis

Bitcoin Price Analysis

Considering the formation in the daily chart, traders may unload on every pullback in alignment with the primary trend or wait for a clean break in either direction. Notably, prices are currently within a bullish formation following May 30 gains. Confirmation of those gains will be critical in defining the immediate to medium-term trend.

Optimists may consider fundamental factors as price props as they expect gains above $32k—an immediate support level. In that case, every low above $28.7k, the support and a critical support level of the bear flag, to add to their longs. A close above the $32k liquidation line would likely open up Bitcoin to $34k before a possible rally to $37.3k in a retest.

Conversely, more losses forcing Bitcoin below the bear flag and $28.7k may draw sellers angling for $26k in a retest of this year’s lows. Further sell-offs could see Bitcoin crater towards $24k with high odds of a possible retest of 2017 highs.

Technical charts courtesy of Trading View.

Disclaimer: Opinions expressed are not investment advice. Do your research.

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