Bitcoin - Trading Range Divergence and Targeting Bearish Flag Pattern
Bitcoin continues to trade within a clearly defined sideways range, recently pushing the price above the range's peak, which is a false breakout, and has returned quickly back inside the range. It appears that the upper limit has strong resistance.
Now on the daily timeframe, the market forms a bearish flag pattern, which usually serves as a continuation signal, towards a decline. If this pattern breaks down, it opens the way towards the area of $68,000, which coincides with the lower limit of the range.
It is likely that moving towards this area will lead to a divergence below the range's bottom, reflecting the previous divergence at the peak. Such divergences often indicate liquidity flows before a potential reversal in the medium term.
Key points,
The price structure remains bearish.
The upper divergence has been invalidated, with the breakout failing.
The daily bearish indicator suggests a continuation of the decline.
Target: $87,000 for a potential lower divergence area.
This scenario remains valid as long as the price of Bitcoin stays below the average range and the structure of the bearish indicator remains intact.$BTC $