Dangerous Signal – Do we have a low flag?
After hitting support where it only touched in January, Bitcoin makes a pattern rally, hitting averages as resistance and falling back again making a dangerous signal: a graphic figure that appears to be a bearish flag.
Projection of a possible Fall Flag:
Support at a low of $29k has already been tested several times and the analyst talking to you is pessimistic if the price touches this zone again.
The flagpole projection suggests a break of support, in which case the next strongest support is only in the $23-20k range. It’s a dangerous signal for Bitcoin.
So that this drop does not happen, the BTC needs to go back, now, to the limit of the flag channel and react by leaving the channel upwards.
We know that technical analysis is not an exact science, but by probability, this is not what usually happens in this pattern. It usually breaks and projects the mast (which is practically $23k).
Once again, fasten your seatbelts and let’s follow!