After falling under a crucial support level, Bitcoin (BTC) tries to restore part of the lost soil. An analyst suggested that this week’s performance will be decisive for the next trend of the cryptocurrency.
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Bitcoin loses the formation of bull flag
At the weekend, Bitcoin lost his post-breakout range for the first time in three weeks and fell at a local low of $ 112,296 on 3 August. The flagship Crypto acted between the range of $ 114,000 $ 120,000 since the beginning of July, since the beginning of July, since the breakout of July and the all-time high (ATH) of $ 122,838 ease in the rally.
As in July the end approached, BTC experienced some volatility, in which the range was tested again, twice during the last week. However, the cryptocurrency was unable to repeat its price repair of the previous weekend and lost the crucial area on August 1.
Stretching capital noted The meeting of that bitcoin can be at risk, and explains that BTC has formed a bull flag in the weekly graph and had kept the lows of the pattern as support until the last weekly closure.
After the recent price action, the analyst believes that this week’s performance will be crucial to see if the bottom of the pattern, around $ 117,200, will be a new resistance and confirms the breakdown, or if the price of the flagship crypto will restore the structure.
According to the analysis, if the price can regain the structure, the correction would be considered a fake -the Near Deviation before it is re -synchronized with the pattern.
In the meantime, the bottom of the pattern in resistance would change a bearish retest, attaching the demolition and possibly leading to a new retest of the $ 112,000 area as support.
BTC’s weekly close by to determine the next trend
Rekt Capital has also detailed detailed that this week’s performance will determine the future of BTC’s second prize discovery trend, which has started his fifth week technically.
Depending on what happens to the bull flag (reclaiming or a confirmation of the breakdown), we will know whether the price discovery will continue 2 or whether BTC has experienced a very short PDU2 instead.
Last week Hertest the analyst that the continuation of the trend of the price discovery could fail because BTC proceeded in weeks 5-7 of this phase. Historically, the second upward trend started to slow down around weeks 5-6 and reached its peak during this ‘danger zone’.
If Bitcoin recalls the Bull flag and challenges new highlights, the second price determination of the prize will claim according to his historical tendencies.
However, if it does not close above the bottom of the pattern every week and confirms an extra disadvantage, the second price determination would have ended in week 2, much faster than historically the case.
Moreover, it would turn out that BTC was in its second price discoder correction, which would “go completely against the grain of history.”
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The analyst suggested that Macro-Wijs Bitcoin still has enough time for a third price determination. If the second phase has already ended, a final assignment can overcompensate for the underperformance of the current Uptrend.
Earlier, Capital claimed that what comes after the second uprising would depend on how long the corrective phase lasts, because a shot correction makes a third upward trend possible for the Bear Market.
Featured image of unsplash.com, graph of TradingView.com