BTC Forms Bear Flag

Bitcoin has been range trading between $52,000 and $46,000 since December 5th. The sideways movement has turned into Bearish Flag on the 4-hour chart.

From the $57,000 peak, Bitcoin has slumped more than 16% and the flag pattern shows a decline of more than 18% considering the bottom at $46,000 just above fib 0.786. If Bitcoin breaks below and follows the bearish flag pattern we might see a major price dump dragging Bitcoin to fib 1.272 near $37000, a level last revisited on August 5th. Near term support is at $45600, the 0.786 fib while resistance is at the previous high of $50,000, fib 0.5.