Bitcoin price has remained within a narrow range as industry concerns continue to grow. The BTC/USD is currently trading at $26,000, the same price as in recent days. Similarly, the BTC/GBP is stuck at 20,522, up from the previous Friday’s low of 19,762.
Last week, bitcoin and other cryptocurrencies were hit by a flash crash, as the Dow Jones Industrial Average moved below the critical support level of $28,300. Technically, a double-top pattern was formed, one of the most accurate bearish indicators on the market.
Analysts point to the derivatives market as a possible contributor to the crash. CoinGlass data shows that over $2.5 billion in open interest was cleared within a few hours. This is remarkable, as implied volatility had fallen to an all-time low at the beginning of this month, but has since recovered.
The cumulative volume delta (CVD) has been green for the last few days, while weighted open interest and aggregate liquidity have remained low.
The next important event for the price of Bitcoin will be the annual meeting of central banks officials at Jackson Hole, Wyoming. This meeting, led by Jerome Powell, will be an opportunity to discuss the current economic situation and any potential actions.
The BTC/USD chart on the 4H time frame shows a strong downward trend in the last few months. The price has fallen below the exponential moving averages of 25 and 50 periods. Most notably, a bearish flag pattern has been created, which is typically a bearish signal in price action analysis. This suggests that the price could break down in the coming days, the next level of support being $25,000.
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