Red lines- bearish flag pattern
Bitcoin is trading around $16,720. Over the last two trading sessions price has stopped the decline and is moving sideways. In the 4 hour chart we observe a bearish flag pattern. A break below $16,540 will be an activation of the bearish flag, thus a new bearish signal. A break below $16,540 can lead Bitcoin to a decline to new 2022 lows or at least a back test of the 2022 lows. Medium-term trend remains bearish and Bitcoin is still vulnerable to new lows towards $12,000. Overall bears remain in control, however we have started seeing bullish RSI divergence signals on a weekly basis and this implies that the down trend is weakening.
