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Bitcoin Technical Analysis

July 17, 2023
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Josh Viljoen
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Josh Viljoen

Brief overview of the current bitcoin price and what to expect in the coming months

Bitcoin price has been in an overall downtrend since reaching new all time highs in November 2021.

The price is currently forming a bearish flag meaning that is likely that the price will break below the black trend line before continuing lower.

 

The bearish flag is a candlestick chart pattern that signals the extension of the downtrend once the temporary pause is finished. As a continuation pattern, the bear flag helps sellers to push the price action further lower. 

After a strong downtrend, the price action consolidates within the two parallel trend lines in the opposite direction of the downtrend. Once the supporting trend line gets broken, the bear flag pattern is activated as the price action continues trading lower. 

There is a strong level of support at $30 000 and should the bearish flag pattern play out I would expect this level of support to retested. This level of support has been retested multiple times in January and between May and July in 2021. The price has not closed below this level since 2020.

 

Conclusion

Overall the momentum is still downwards. If I was looking to add to my Bitcoin holdings I would be starting $30 000 as buying zone.

 


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