{"id":47931,"date":"2022-05-27T12:36:04","date_gmt":"2022-05-27T10:36:04","guid":{"rendered":"https:\/\/crypto-economy.com\/?p=47931"},"modified":"2022-05-27T12:36:04","modified_gmt":"2022-05-27T10:36:04","slug":"bitcoin-stuck-in-a-bear-flag-btc-drops-to-retest-28-7k","status":"publish","type":"post","link":"https:\/\/crypto-economy.com\/bitcoin-stuck-in-a-bear-flag-btc-drops-to-retest-28-7k\/","title":{"rendered":"Bitcoin Stuck in a Bear Flag, BTC Drops to Retest $28.7k"},"content":{"rendered":"
Bitcoin prices<\/strong> are still moving in a narrow trade range with clear resistance and support levels<\/strong> when writing. Even though buyers are optimistic, their confidence has failed to turn around and tame sellers who have unwound gains of recent days.<\/p>\n <\/p>\n Technically, BTC crypto prices are under strong selling pressure and in a bear flag<\/strong> within a larger bear breakout formation from a top-down analysis. A notable development in the past trading day<\/strong> is shrinking trading<\/strong> volumes pointing to general trader apprehension, which weighs negatively against bulls.<\/p>\n Despite the meltdown, over 12 million BTC have not been moved in the past year<\/strong>. During this time, Bitcoin prices have tanked from around $69k registered in November 2021 to less than $30k at spot rates.<\/p>\n On May 25, JP Morgan Chase<\/strong> analysts said the Bitcoin fair value is 28 percent from spot rates at $38k. Besides, JP Morgan placed Bitcoin and Hedge Funds<\/strong> ahead of real estate<\/strong>, saying the two were their preferred alternative assets.<\/p>\n 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.<\/p>\n Over the years, JP Morgan has continued to be accommodative of crypto assets, especially Bitcoin<\/strong>. In August 2021, the global bank allowed wealth management clients to access six approved Bitcoin funds, including the Grayscale Bitcoin Trust.<\/p>\n <\/p>\n 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<\/strong>, 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<\/strong> and May 11 highs may trigger a bull run towards $34k<\/strong> and later $37.3k<\/strong> as Bitcoin bottoms up.<\/p>\n 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<\/strong> and the bear flag may trigger further dips towards $26.7k<\/strong>, 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.<\/p>\n Technical charts courtesy of\u00a0<\/em><\/strong>Trading View.<\/em><\/strong><\/a><\/p>\nBitcoin “Diamond Hands”<\/h2>\n
JP Morgan says Bitcoin’s Fair Value at $38k<\/h2>\n
Bitcoin Technical Analysis<\/h2>\n