BTC/USD: Bitcoin's Bear Flag Pattern

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Analysis
- Bitcoin has dropped a whopping 18% from local high regions
- Below the 0.236 Fibonacci retracement resistance, it is currently distributing once again
- 10.5k was important support for bulls to secure, and has now turned to a zone of resistance
- While prices are temporarily forming higher lows and higher highs, it is forming a bearish flag pattern
- As we have been rejected by the resistance several times, it's more probable that a breakdown takes place
- Should Bitcoin break down from the current ascending parallel channel, it would fill the major CME Futures gap at 9.6k
- The Moving Average Convergence Divergence (MACD) also demonstrates potentiality of a death cross, with diminishing bullish histograms
- This demonstrates that there is a lack of bullish momentum to drive prices through resistance

Conclusion
It's important to realize that current levels are not optimal for opening new short or long positions. We are looking at a short term bearish trend, within a long term bullish trend. Given the current situation, it is suggested that:
a) traders look for opportunities to capitalize on altcoins
b) dollar cost average spot Bitcoin for the mid-long term

Don't predict the market. Take it by levels, and play by probabilities.
- Michael Wang-