Bitcoin Stuck in a Bear Flag, BTC Drops to Retest $28.7k

Bitcoin Stuck in a Bear Flag, BTC Drops to Retest $28.7k
Table of Contents

Bitcoin prices are still moving in a narrow trade range with clear resistance and support levels when writing. Even though buyers are optimistic, their confidence has failed to turn around and tame sellers who have unwound gains of recent days.

Technically, BTC crypto prices are under strong selling pressure and in a bear flag within a larger bear breakout formation from a top-down analysis. A notable development in the past trading day is shrinking trading volumes pointing to general trader apprehension, which weighs negatively against bulls.

Bitcoin “Diamond Hands”

Despite the meltdown, over 12 million BTC have not been moved in the past year. During this time, Bitcoin prices have tanked from around $69k registered in November 2021 to less than $30k at spot rates.

JP Morgan says Bitcoin’s Fair Value at $38k

On May 25, JP Morgan Chase analysts said the Bitcoin fair value is 28 percent from spot rates at $38k. Besides, JP Morgan placed Bitcoin and Hedge Funds ahead of real estate, saying the two were their preferred alternative assets.

Their comments on Bitcoin and crypto prices are an endorsement of the sphere even though its leader, Jamie Dimon, had earlier dismissed Bitcoin, saying it was worthless and a fraud.

Over the years, JP Morgan has continued to be accommodative of crypto assets, especially Bitcoin. In August 2021, the global bank allowed wealth management clients to access six approved Bitcoin funds, including the Grayscale Bitcoin Trust.

Bitcoin Technical Analysis

 bitcoin price

BTC prices have been consolidating in the past 14 days inside May 11 bear candlestick. Overall, Bitcoin is within a bear flag in a bear breakout formation pattern and are bears are now retesting $28.7k, a key support level. Risk-averse traders may have to wait for a clear price trend definition in the days ahead. A close above $32k and May 11 highs may trigger a bull run towards $34k and later $37.3k as Bitcoin bottoms up.

On the reverse side, risk-off traders may align with the primary trend and unload on every high in anticipation of a break below. A solid break below $28.7k and the bear flag may trigger further dips towards $26.7k, or worse, in the short to medium term. The resulting formation will align the trend with the bears of April 11, May 5, and May 9, forcing Bitcoin to new 2022 lows.

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.


Follow us on Social Networks

Crypto Tutorials

Crypto Reviews