Crypto investors are now getting used to the major drop in the popular cryptocurrency price, Bitcoin (BTC). The hard crypto crash has incurred millions of losses to crypto investors while reaching the US$19k price range. The bear flag in the crypto market has made it possible for Bitcoin to reach US$21k in July 2022. Even if BTC has created a bear flag in the crypto market, crypto investors are speculating that it is not a good sign for the topmost cryptocurrency.
There are downside risks after the hedging behavior of Bitcoin in the crypto market with the bear flag pattern. The bear flag consists of the pole and the flag. The recent trading behavior of BTC is known as a bear flag— a sudden pause after the drastic drop as well as getting ready to move even lower. Thus, it is not a safe option or good sign for crypto investors who are hopeful for Bitcoin to raise its price, just like US$68k in November 2021.
At the time of writing, the current price of BTC in the crypto crash is US$20,154.65 with a market cap of US$384.82 billion and a volume of 34.48 billion. The bear flag of Bitcoin means there is an upside-down pattern on its price chart. Crypto investors should be ready for the breakdown of BTC at any point in time. The breakdown will be experienced if the cryptocurrency price finished below the lower end of the bear flag at the end of a trading date. The crypto crash has made Bitcoin reach US$17k at the all-time low in 2022, thus the breakdown will open the doors for a retest of that lowest range.
That being said, the bear flag of Bitcoin may pose a bit relaxed in the current crypto market, but the flag may end with a downward trend. That is not suitable for long-term crypto investors along with a bad sign. Since it may incur huge losses to crypto investors, they can opt for stop-loss orders. They should set their stop-loss orders above the Bitcoin bear flag resistance line to survive a hard crypto crash case.
Thus, the further breakdown of the Bitcoin price in the bear flag situation may extend to offering more disadvantages in the crypto crash ecosystem. It may reach the February 2018 cryptocurrency price at US$5k and put other properties in high danger of a retest of the preliminary low in the bear flag.
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