A Crypto Analyst Warns of Bitcoin’s Downtrend
A popular crypto analyst is cautioning traders that Bitcoin’s downtrend is not over yet, based on a bearish signal. The analyst points out that Bitcoin seems to be forming a classic bearish flag pattern, which often indicates a continuation of the downtrend. This pattern occurs when price consolidation follows a significant decline but fails to break through a crucial support level.
According to the analyst’s chart, the bear flag pattern will materialize if Bitcoin fails to flip support around the $28,034 level, potentially causing it to drop to $26,751. The analyst also notes that the Relative Strength Index (RSI), a widely used momentum indicator, supports a Bitcoin dip. Each time the RSI on the four-hour chart hits or surpasses 74.21, Bitcoin tends to retrace, and the RSI recently reached 82.83.
Bullish Reversal for Ethereum?
The analyst also weighs in on Ethereum (ETH) and suggests that it may be setting the stage for a bullish reversal based on the market value to realized value (MVRV) indicator. The MVRV compares an asset’s total market cap to its realized value and can help identify market tops and bottoms. Currently, ETH remains in a distribution phase but is waiting for heavy accumulation.
Bitcoin and Ethereum Prices
At the time of writing, Bitcoin is trading at $27,568, up 0.6% in the last 24 hours. Ethereum is trading at $1,618.
Hot Take: Beware of Bitcoin’s Downtrend
A crypto trader warns that Bitcoin’s downtrend may continue as it displays a bearish signal with a potential bear flag pattern. The trader emphasizes the importance of monitoring key support levels, particularly around $28,034. Additionally, the Relative Strength Index (RSI) on Bitcoin’s four-hour chart is signaling a potential retracement. While Ethereum shows signs of a bullish reversal based on the market value to realized value (MVRV) indicator, Bitcoin’s current situation suggests caution for traders.
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