In our previous articles, we mentioned that the BTC/USDT pair showed some repetitive patterns, which triggered a significant sell-off during the past eight months. This pattern is called an inverted flag pattern and encourages sellers to continue the prevailing downtrend. Though the pattern breakdown has positioned the coin for a significant downfall shortly, the price is currently teetering above $20750.
Key points from BTC analysis:
- Sustained buying may drive the BTC price to $22500 before resuming the prevailing downfall.
- The bullish breakout from $22550 will invalidate the bearish thesis
- The intraday trading volume in Bitcoin is $15.5 Billion, indicating a 27.58% loss
The Mid-July to August recovery in the BTC chart revealed the same pattern and pushed the price to $25135 higher. However, in August’s second week, the crypto market witnessed sudden selling pressure and breached the pattern and support trendline.
This pattern completion suggests the short-term recovery has ended, and the BTC price will continue the long-term downtrend. Thus, the price has tumbled 15.5% from the previous swing high of $24550 and plunged to the local support of $20750.
