Bitcoin Revival, BTC Bear Flag Breakout Valid, Support at $16.5k

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Bitcoin could be up roughly three percent in the past 24 hours, posting a strong close to the week. However, the bounce is at the back of weakness.

From the daily chart, BTC prices are still in consolidation after the breakout from the bear flag.

Bulls can pin the failure of bears to press lower below $16.5k. Per their assessment, the November 30 bull bar defines the short-term trajectory. Every low should technically be a loading opportunity for traders.

The immediate target lines are at liquidation at around $17.5k and $18.5k. If buyers pierce above this zone, BTC could tear higher, posting new December 2022 highs.

Crypto Winter Tears Coinbase

Like other crypto assets, Bitcoin has not been immune to the bears of 2022. To illustrate, the coin is down 67 percent from peaks. Besides, the primary trend remains within a bear formation from a top-down preview.

Subsequently, projects, most of which flourished in the bull market of 2020 and 2021, are struggling.

Coinbase, one of the first exchanges, is already under pressure.

Moreover, Coinbase’s revenue is tanking, a concern for investors. As widely reported, Brian Armstrong, the CEO, said their revenue in 2022 could drop by over 50 percent.

Brian told Bloomberg,

“Last year in 2021, we did about $7 billion of revenue and about $4 billion of positive EBITDA, and this year with everything coming down, it’s looking, you know, about roughly half that or less.”

Bitcoin Price Analysis

Bitcoin BTC daily chart for December 9

Bitcoin, as mentioned earlier, shot higher on December 8. The coin is up roughly 10 percent from November lows at spot rates. Notably, BTC is bottoming up and within a bullish breakout formation above the bear flag of late November.

Although bulls are confident, Bitcoin is bearish from a top-down preview. Ideally, for the uptrend to take shape, buyers must force prices above the sell wall at $17.5k and $18.5k. The breakout should be with expanding volumes. In that case, BTC may edge higher, recouping losses of early November.

Before then, conservative traders should closely watch how price action pans out and how bulls react at $17.5. A follow-through above this week’s high and, thus, current consolidation will be a positive move from an effort versus result perspective. In that case, bulls of November 20 will flow back, supporting BTC with an anchor at $16.5k.

Technical charts courtesy of Trading View.

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

If you found this article interesting, here you can find more  Bitcoin news.


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