A cryptocurrency analyst has pointed out how Bitcoin could risk a crash to $69,230 if the support level of this Bear Pennant doesn\u2019t hold up.<\/p>\n
In a new post<\/a> on X, analyst Ali Martinez has talked about a support level that BTC might have to hold in order to avoid a steep drop. The level in question is the lower line of a Bear Pennant<\/a>.<\/p>\n A Pennant is a pattern from technical analysis (TA) that\u2019s similar to a Flag<\/a>. Both of these patterns are characterized by an initial sharp move (commonly known as the \u201cpole\u201d) and a subsequent phase of consolidation. But unlike Flags, which involve a parallel consolidation channel, Pennants involve a triangular channel instead.<\/p>\n When the price is trading inside the consolidation portion of the Pennant, it encounters resistance at the upper line and support at the lower one. A breakout of either of these levels may signal a sustained move in that direction. Pennants are generally considered to be continuation patterns, so a move may be more likely to take place in the same direction as the pole. In a Bear Pennant, the pole is represented by a downward move, implying that a bearish continuation could succeed the pattern.<\/p>\n Now, here is the chart shared by Martinez that shows the Bear Pennant that Bitcoin has been trading inside on the daily timeframe over the last couple of months:<\/p>\n As displayed in the above graph, Bitcoin retested the upper line of the Pennant\u2019s consolidation region when its price surged above $94,000. This retest ended up in rejection, and the coin has since retraced to lower levels.<\/p>\n If the current trajectory in the cryptocurrency continues, it\u2019s possible that a retest of the support level could take place, which is situated around $87,200. Since the pattern involved here is a Bear Pennant, BTC failing a retest of this line could signal a bearish breakout.<\/p>\n Pennant breakouts are usually considered to lead to a move that\u2019s similar to the pole in length. Based on this, BTC\u2019s breakout target from the current pattern could lie near $69,000. \u201cBitcoin $BTC must hold above $87,200 to avoid a drop toward $69,230,\u201d explained the analyst.<\/p>\n Bitcoin is currently also trading near an important on-chain level: the Active Realized Price<\/a>. This indicator keeps track of the average cost basis of the active network participants. According to data from on-chain analytics firm Glassnode<\/a>, the Active Realized Price is located at $87,700 right now, meaning that the active investors are in a slight amount of net profit.<\/p>\n At the time of writing, Bitcoin is trading around $90,400, up more than 1% over the last week.<\/p>","protected":false},"excerpt":{"rendered":" A cryptocurrency analyst has pointed out how Bitcoin could risk a crash to $69,230 if the support level of this Bear Pennant doesn\u2019t hold up. Bitcoin Might Need To Hold Above $87,200 In a new post on X, analyst Ali Martinez has talked about a support level that BTC might have to hold in order […]<\/p>\n","protected":false},"author":0,"featured_media":125984,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[4],"tags":[],"class_list":["post-125983","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-discovery"],"_links":{"self":[{"href":"https:\/\/mycryptomania.com\/index.php?rest_route=\/wp\/v2\/posts\/125983"}],"collection":[{"href":"https:\/\/mycryptomania.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/mycryptomania.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"replies":[{"embeddable":true,"href":"https:\/\/mycryptomania.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=125983"}],"version-history":[{"count":0,"href":"https:\/\/mycryptomania.com\/index.php?rest_route=\/wp\/v2\/posts\/125983\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/mycryptomania.com\/index.php?rest_route=\/wp\/v2\/media\/125984"}],"wp:attachment":[{"href":"https:\/\/mycryptomania.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=125983"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/mycryptomania.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=125983"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/mycryptomania.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=125983"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}BTC Price<\/h2>\n