Bitcoin has arguably found a bottom at $80,000. However, after a $46,000 plummet from the all-time high, cementing that bottom might be difficult. Bitcoin traders need to move with caution – sharp falls as well as spikes to the upside may be in the cards.
If one assumes that the bottom is indeed in at just over $80,000, some might expect a v-shaped recovery. However, with liquidity still causing issues this is perhaps not the most likely scenario. That said, given the still very negative market sentiment, a short squeeze could come into play, forcing the price higher. All in all, this is still a dangerous phase for Bitcoin traders, and sharp price spikes in either direction could still be the norm.
A $BTC bear flag forming?
Source: TradingView
The 4-hour chart for $BTC reveals that the price is currently within an ascending channel – to all intents and purposes a bear flag. As far as the bulls are concerned, the sooner this is nullified as a potential pattern the better. H
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