It seemed like Bitcoin had a rendezvous with its “flash crash” low.
It began to feel inevitable as the series of lower highs on the 30 minute chart persisted. There were short term bounces at what technicians would call appropriate support levels along the way, but they continued to fail.
Late yesterday afternoon a waterfall decline began that took the price of Bitcoin back to its low of the year. Earlier in the month it looked like a double bottom had formed at this $12,800 level, and there was a slight pause in the drop and some consolidation there. But a bear flag formed and the subsequent breakdown from that pattern propelled price back down to $11,181.
It was done.
There has been a sharp bounce back up to the $12,500 level followed by a higher low, but there is a large amount of technical work to be done if Bitcoin were to stabilize here and begin to reverse its downtrend. A break below the crash low brings into play levels of support that go back a long way and require the use of the daily chart.