Bitcoin Weekly Bear Flag's Next Short-term Sell-off Trigger

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The purpose of writing this latest analysis is to share my technical thoughts when another bearish price action prevails for the cryptocurrency leader Bitcoin.

This week, I’m looking for a potential short-term selling setup for Bitcoin but the question is, where’s the trigger?

To find that, it is important that we still consider the ongoing weekly and monthly downtrends to gather confluences for this trade.

One of the leading factors that halted Bitcoin’s rally is the hawkish Greenback. Bitcoin ended last week’s trading in red and the chance for this trade plan will be verified by a double weekly candle bottom manifestation with oversold indicators from the quicker/smaller time stamps. Should this scenario plays out, next immediate resistance awaits at the $23,150 level. That’s my short entry over there.

Keep in mind that volatility can strike anytime this week through Bitcoin’s faster time frames. Watching for further development on BTCUSD’s recent flag formation that has been formed by its huge June bear month serving as the pole.

At the time of writing, price have already back tested both the bottom range of Bitcoin’s bear flag as well as last week’s low. The higher high and low ranges are still intact. At least price are locked in the hidden range bounds, still part of the bear flag formation though. With flat highs and lows shown in the last 5 weeks or so.

Also, I find it interesting that both pivotal levels of this hidden ranges and the weekly bear flag itself  are near to each other supporting my short entry mentioned earlier.

A clear price break above these pivotal levels will open the upper territory and might entice the bulls. This move will make the recent shorts on Bitcoin lows last week cover their positions so I’m thinking to put the stop loss in the $24,200 mark. However if price gets rejected from these pivotal levels, my take profit mark will be $21,550. I want emphasise that this will be a quick shorting trade focusing the weekly bear flag development. A risk to reward score of 1.524 only.

For the worst case scenario, the June low area remains unclear! The weekly bear flag pattern has been strengthening so far and very resilient.