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We have been tracking the Bearish Flag Pattern currently playing out in the Bitcoin 1-hour timeframe. This key pattern is a bearish continuation pattern and the last time we saw it form in the Bitcoin price, the currency dumped more than -40% in just a matter of days.
By forming again, it is raising a lot of worries and concerns for Bitcoin hodlers and traders alike. Should we expect to see a similar price crash in the coming days or will this pattern be invalidated?
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The Key Level To Watch
The most important level for Bitcoin right now is the Base Support Channel of the Flag pattern. As far as this key support holds in the 1-hour timeframe, we can expect to see a price bounce in Bitcoin in the coming days.
That price action for Bitcoin would look very similar to the image below and would indicate that the Flag pattern might not yet be completed or the bulls might be getting ready to invalidate the pattern altogether.
Final Verdict!
The Bitcoin price is currently in a ranging market and will remain in that ranging market as far as the price continues to trade within this flag pattern channels in the 1-hour timeframe.
In the coming days, we will continue waiting to see a price breakout/breakdown from this key pattern. However, there is a very high probability that we might see a breakdown because the Flag pattern is a bearish continuation pattern that indicates more sell-off to come for Bitcoin.
But for us to confirm this bearish bias, we need to see a clear price break and close below this flag pattern in the 1-hour timeframe. And until we see this bearish confirmation, we will stand aside and wait.
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