The price of Bitcoin has continued to be in free fall in what seems to be one of the quietest periods in history. Also, several technical and fractal setups have suggested that the BTC/USD pair could be dropping to as low as $21,750 in the next few months. The cryptocurrency has already consolidated inside a trading range since the middle of August 2023, which was then defined by $26,760 as resistance, and a sum of $25,650 as support. Briefly, the price of the cryptocurrency broke out of the range as a result of several fundamental news, which include the new Bitcoin ETF applications, as well as the liquidation fears of FTX.
Bitcoin Could Be On A Free Fall
Overall though, traders have managed to keep the price of Bitcoin inside the range of $25,650 to $26,670. If one were to look broadly, this range does turn out to be quite a bear flag, a bearish continuation pattern that has been heavily characterized by a consolidation channel that was formed after a strong move downtrend. As a significant rule of technical analysis, the bear flags do get resolved after the price breaks out of the range to the downside and then falls by as much as the previous downtrend’s height.
The bear markets for Bitcoin, since 2017, have quite typically exhausted itself near a common ascending trendline support. The price of BTC did test the trendline in November 2022 at around $16,750 and has kept increasing by 70%. With that being said, it should be understood that the cryptocurrency might have already bottomed out in the ongoing bear market. However, the price would have to break itself decisively above the Fib line of 0.236 near $28,350.