Main navigation

Bitcoin May Reach $19,000 Again Because of This Pattern: Analysis

Tue, 07/19/2022 - 09:55
article image
Arman Shirinyan
Bitcoin is following simple pattern that dictates behavior of market for month
Bitcoin May Reach $19,000 Again Because of This Pattern: Analysis
Cover image via

Disclaimer: The opinion expressed here is not investment advice – it is provided for informational purposes only. It does not necessarily reflect the opinion of U.Today. Every investment and all trading involves risk, so you should always perform your own research prior to making decisions. We do not recommend investing money you cannot afford to lose.

Read U.TODAY on
Google News

Bitcoin's path to $23,000 was a "hope rally" that, if it succeeded, could have meant that the cryptocurrency market was finally facing the reversal that everyone waited for so long. Unfortunately, the lack of buying power and trading volume pushed the price of the digital gold back to the local bottom.

Pattern that pushed Bitcoin down

Bitcoin had been moving in a bearish flag pattern for the last month, marking at least three local highs from $22,000 to $23,000. Unfortunately, none of the spikes ended up in a full reversal rally as the first cryptocurrency reversed back to local lows of around $19,200.

Bitcoin chart
Source: TradingView

Luckily, we also did not see any drops to $17,000 after June 20, which shows that the market has most luckily capitulated, and the recovery rally is not possible because of the lack of inflows into the market.

Historically, Bitcoin should continue to move downward and reach the lower border of the formation before making another breakout attempt, while hoping that additional selling pushes the first cryptocurrency below the aforementioned pattern.

Lido Finance to Sell $29 Million Worth of Tokens, Causing 20% LDO Drop

The bearish flag is one of the most common patterns for assets that move in sharp downtrends. They usually appear when the market needs to "cool off" before another spike up or plunge down.

Ethereum takes spotlight

Following the release of the Merge update date, Ethereum saw a massive 30% rally, and projects that will benefit from an upgrade like Lido Finance capitalized on the big news as their tokens spiked for 200%.

At press time, Ethereum is leading the market with a 25% rally in the last seven days, while Bitcoin is falling back to $21,000 and is still failing to recover.

article image
About the author

Arman Shirinyan is a trader, crypto enthusiast and SMM expert with more than four years of experience.

Arman strongly believes that cryptocurrencies and the blockchain will be of constant use in the future. Currently, he focuses on news, articles with deep analysis of crypto projects and technical analysis of cryptocurrency trading pairs.