Bitcoin, Major Crash Even If It Exceeds $80,000?...Warning of a Hidden Trap After a Rebound

▲ Bitcoin (BTC) Decline/AI Generated Image

Bitcoin (Bitcoin, BTC) price has formed a second bear flag pattern on the chart, standing at a crossroads for further sharp declines.

Cryptocurrency specialized YouTube channel Altcoin Daily warned of potential market risks based on Bitcoin's current technical analysis in a video uploaded on April 10 (local time). According to the analysis, Bitcoin has entered a second bear flag zone on the chart, known as a very dangerous structure. A bear flag typically signifies a continuation pattern of decline, where the price temporarily consolidates or rises slightly before plummeting again.

Even if Bitcoin recovers its price to the $79,000 to $81,000 range through a short-term rebound, it is difficult to see this as a break in the downtrend. This is because even if the price rises to that level, the current downward pattern remains intact. Technically, there are concerns that a temporary rise could actually be preparation for an even larger crash.

The current chart setup for Bitcoin, from a probabilistic perspective, suggests a higher likelihood of retesting previous lows rather than a bullish rally breaking through previous highs. Among investors trading Bitcoin, there is growing caution that the current rebound attempt could be a trap set by whales. Analysis indicates that downward pressure is dominant, as confirmed by indicators.

While key variables determining Bitcoin's price direction are complexly interacting, the warning signals shown by the chart are very clear. In the past, without exception, strong price corrections followed the completion of a bear flag pattern. The current market structure shows indicators predominantly forecasting a decline rather than an ascent, requiring investors' special attention.

If Bitcoin fails to surpass the critical threshold of $81,000, there is a significant concern that market disappointment selling will flood in, accelerating the pace of price decline. The outcome of this bear flag pattern is expected to not only affect Bitcoin's short-term trend but also significantly sway overall market sentiment. Technical analysts advise preparing for a large-scale price drop scenario that could occur if Bitcoin fails to break through the resistance level.

*Disclaimer: This article is for investment reference only, and we are not responsible for any investment losses based on it. The content should be interpreted for informational purposes only.*