Does This Chart Pattern Mean Bitcoin Has Found A Floor? 12 June 2022


"Are you really sure that a floor can't also be a ceiling?"

--M.C. Escher


One of my favorite components of a house is the floor.

It helps define the mood and flavor of any environment.

Once upon a time when my better half and I were planning the details of our first home together, we had a major disagreement about the floor.

She wanted light wood... I wanted dark.

So, of course, we got stone... the art of compromise.

At any rate, Bitcoin/USD has spent the last few weeks trying bottom out  [or as traders call it, "put in a floor"]. 

Weekly Chart w/Broken Support -- Price traded around support long enough to create the flag portion of a #BearFlag pattern.  

Weekly Chart w/Rally Back To #Resistance -- Price rallied back to resistance on the weekly chart.  You'll see it even more clearly on the daily chart below.

Weekly Chart w/Bear Flag - Price appears to be breaking through the bottom of the flag.

Daily Chart showing price failure at resistance - Price got turned back right at resistance... Shown more clearly here on the daily chart.

Bottom Line:

It's hard to say where BTCUSD will find a bottom.  The next horizontal levels of support include $20,000 followed by $12,000.

That's not to say that price is going to either of those prices immediately... just that those are the next apparent levels on the chart.