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BTC analysis – the price is headed for $22,000. Where does the correction stop?

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BTC is still there in the short term in a downward trend and this descent is likely to continue until tomorrow. The market price still respects resistance also support bearish flag and probably won’t break it in the next few days. The dominance of the main cryptocurrency jumped to the current 42.46% since yesterday.

In the short term, I am watching support area around $22,000, where high transaction volumes begin. It is likely that the price will form a higher local low than the last one located exactly at point of control – 20,900 dollars. However, if the price were to contact this support, it would still be inside the flag.

Bitcoin continues on its way to $22,000

BTC continues on its way to $22,000. Source: TradingView

BTC will continue to flag

The price at the last high reached the same level as at the penultimate high, which means that a double top and it is the first equal high during the entire flag. Therefore, there is a risk of creating a pattern 123 top formation which would be confirmed if the price broke the last low at $20,900.

At that point the price would end the flag. Until then, however, the price respects the flag and in the case bullish we follow the movement resistance at $25,500. Above the price on the chart we see a falling white line that defines the long term resistance with maximums from ATH. I’m still medium-term bearish and I don’t think the price will overcome this resistance on first contact.

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All content in this article is for informational purposes only and in no way serves as investment advice. Investing in cryptocurrencies, commodities and stocks is very risky and can lead to capital losses.

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