Bitcoin data shows a series of bearish trading patterns that could usher in new price lows if the key support at $60,000 fails to hold. Here’s why bulls need a rally to $76,000.
Bitcoin’s (BTC) range-bound trading within the $60,000 to $73,000 range is impressive, especially when considering the macroeconomic backdrop of Brent crude oil rising to levels not seen since 2008, a hot war between the US, Israel and Iran, and a volatile stock market where the S&P 500 index trades at a 3.95% year-to-date loss.
Despite these intensifying headwinds, Bitcoin buyers have shown a steady appetite for buying the price drops to $60,000, and while the level currently holds as support, the risk of lower prices is not zero.
Bitcoin’s 1-day chart shows a bearish continuation pattern, with one pattern confirmed on Jan. 20 as BTC price entered a correction to $60,014, and a second bear flag currently in play. Every price rally to the flag’s overhead trendline has been rebuffed since Feb. 8, and technical analysis stresses the importance of a rally and multi-day candle close above $76,000 to negate the pattern.
