The price of bitcoin fell by no less than ten percent in a quarter of an hour last Tuesday. But technical analysts see a price formation that could possibly lead to another fall, towards 6,500 euros. It may not be nice to hear, but a warned person counts for two.
Bearish pennant can cause fall
The course of bitcoin is again in a somewhat calmer waters after Tuesday’s crash. But that can also mean a calm before the storm. Bearish Bulltard namely has spotted a bearish pennant on the bitcoin price chart.
A bearish pennant is the opposite of a bullish pennant. First the course drops fast. Then the price moves between two trend lines. Bitcoin eventually breaks out at the bottom. The price target of a bearish pennant is as large as the first fall.
In that case it means that the bitcoin rate can still fall to 6,500 euros. And that can happen quickly. The trend lines already meet each other tonight, around the clock at 6:00 PM. You can see that on the graph below:
Situation reminiscent of November 2018
It is not the first time that the price of bitcoin has moved in this formation. The situation today is reminiscent of November 2018. Even then, the price of bitcoin fell enormously. For a moment, bitcoin seemed to have found support, but then the price fell through the lower limit.
There is no need for a fall
It’s an annoying scenario, but it’s just a possibility. Whether it is convenient? That is the question. There is also a possibility that bitcoin has now found support.
If we take the 200-day Moving Average (MA), we see that the situation in November 2018 was different than now. Then the price of bitcoin was still below the 200-day MA and the bitcoin failed to rise above the line.
But at the moment the 200-day MA can serve as support. In that case the damage is limited to the decrease.
They are exciting times anyway!
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