BTC has already tried to break through twice resistance of a bearish flag that has been on the market for 6 weeks. Bullish volumes however, they were not enough and they are retreating again. It seems that we are in for another short-term correction towards the support zone. Meanwhile, the dominance of the main cryptocurrency continues to decline to 42.11%.
I assume that the price will form a rising low again after a short-term correction. Even if the bearish flag is supposed to end with a breakout support, it doesn’t always have to be that way. We are watching bullish target at the level of approx $25,500. Long term resistance sits at $28,000, but so far buyers don’t have the power to push the price that high.
BTC failed at resistance. Source: TradingViewBTC failed at resistance
When the price surpasses resistance, we are likely to see increased volatility to the upside. However, this has not happened yet and the price is still in a bearish flag. We follow the support area in the zone around 22,000 dollars. In the short term, we stay bearish and also from the medium term.
Even if the price has a slightly upward trend, increases bullish volumes are only one-day, which is not enough to reverse the trend from a medium-term point of view. Therefore, we still have to consider the scenario when the price does not maintain the current sideways movement and falls below the lowest minimum at the level of $17,600.
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