Bitcoin has been quiet for weeks, trading around $20,000. The declines have slowed down and the bad news around cryptocurrencies, too, seems to have stopped. However, the price of the largest virtual currency draws an ominous technical figure, a bearish continuity flag.
For technical analysts, the bearish continuation flag represents a pause in an asset’s nosedive. It is usually a bad sign on the stock market. Bitcoin seems subscribed to this figure.
It also formed between May and June, breaking out of a strong retracement to make way for a 42% drop that took the virtual currency to $17,600 from $30,000.
The latest Bloomberg poll sides with the bears: most respondents said the token is more likely to drop to $10,000 than to recapture $30,000. “Not only is the broader market environment not in their favor, even if the occasional bear market rally does inspire some hope, but the crypto community isn’t enthusiastic either,” comments Raigar Merla, senior market analyst at Anda.
Bitcoin’s decline began in November of last year, when it exceeded $60,000. It coincided with a progressive tightening of monetary policy by the Fed and many central banks. The valuation of digital currencies plunged into the void, which has caused the collapse of several lending platforms and investment funds. The collapse of the prices implied the fall of the stablecoin Terra. Its counterpart could not hold the level of parity with the dollar due to the lack of liquidity and dragged down .
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