There has been a steady decline in the price of Bitcoin in recent months, bringing the price of the cryptocurrency to almost 50% of the year’s maximum of $14,000.
After the last sustained decline, Bitcoin now begins to appear as a tolerable chart pennon, suggesting that there is still another decrease, and the price of the leading cryptocurrency by market capitalization could be as low as $ 4,600 to come.
Bitcoin Price Forms Bear Pennon At Bottom of Downtrend
Once Bitcoin’s parabolic recovery cooled this summer, the first price of the cryptocurrency began to decline and fell again into a downward trend. At the end of October, it was seen that the tide changed, with the crypto asset establishing a single historical day of more than 40%.
But this recovery was a little more than the resistance of the slowdown of the previous support. Which further reduced the decline of Bitcoin in the coming days.
After the purchase and outbreak of FOMO according to Chinese news, the cryptocurrency resumed its downward trend, and the last fall saw property prices drop from $10,500 low to $6,500. Before bouncing and consolidating at current prices around $7,500.
The fall of the step resulted in a flag survey for the formation of the bear pennon chart on the Bitcoin price chart. The cryptocurrency has been operating within the structure for about three full weeks now. And a pattern break can occur on any day given that the price is near the top of the triangle-shaped pattern.
Penon target $4,600, the 2019 crypto rally virtually disappeared
If the pattern is valid, the price of Bitcoin has activated a daily candle outside the pattern, suggesting that a breakdown is imminent. If a collapse occurs, the Bear Pennon can have a stated target of only $4,600.
Such reduction would eliminate virtually all Bitcoin earnings throughout the calendar year, and withdraw the asset at prices seen since April of this year.
If the pennon breaks, the shocking bear yields to the current trend, it could push the price of Bitcoin over the $7,000 limit. Where it would need to claim a new high in the $8,000 range before making further attempts.
One side of a flag shape, buying and selling, when taken by surprise, a long flagpole-shaped candle results in a prolonged purchase or sale. Once the price is below or above the flagpole, a flag or pennon begins to reinforce the result. Flags are rectangular in shape, and often lean toward the initial break. While pennons are triangular in shape and are generally more symmetrical in their patterns.