Bitcoin 4H Chart — Don't Get Fooled By The "Bear Flag"

I saw countless analyses calling for a bear flag pattern on the Bitcoin 1H chart. If you did, too, and have already started worrying, you should relax and remember that technical analysis is more than drawing lines!

When it comes to chart patterns, volume is typically as essential as the pattern itself. A pattern without volume confirmation is only a good guess. And that's precisely why the bear flag pattern doesn't make sense! Such a bearish continuation pattern is driven by descending volume! In other words, the price recovers gradually while the buying power disappears.

Currently, we have the exact opposite. The volume increases as the price moves higher!

Does that mean we are out of the woods? Absolutely not!

Although Bitcoin is back in the descending channel, it has not initiated a reversal yet. 56.8k is the first intermediate target. To turn truly bullish, Bitcoin has to 1) get back above 57.5k and 2) challenge the ~60k. That's quite some work for the bulls.

As often, the U.S. markets will be decisive today. If they continue to go south, Bitcoin will go lower and retest 52.5k again.

Overall, we will see volatility. This is not good terrain for long-term trades, but it is the perfect environment for some short-term scalps!