Is Bitcoin going to crash? – perspective by Cointelegraph
BTC price has rebounded by more than 19% three weeks after hitting a two-month low of approximately $56,550, reaching approximately $67,270 on May 20.
However, Bitcoin’s potential to undergo a sharp correction in the coming days is high, based on its recent price action.
Notably, the BTC/USDpair has been trending inside what appears to be a bull flag pattern since March, when it refreshed its record high to around $73,800. As of May 20, BTC's price was testing the flag's upper trendline for a potential breakout.
However, the breakout attempts lack adequate trading volume, thus increasing BTC's possibilities of undergoing a pullback.
In this case, the next downside target is at the flag’s lower trendline, coinciding with the 200-day exponential moving average (200-day EMA; the purple wave) at around $53,970 by June.
Conversely, a decisive breakout above the flag's upper trendline could have the price rise by as much as the previous uptrend's height, per the rule of technical analysis.
Doing so would send BTC's price toward $84,000 by June, up around 25% from the current price levels.
