Bitcoin Bounce A Bull Trap? Analyst Sees | Crypto News
A cryptocurrency analyst has identified how the current Bitcoin price motion might echo the bear flag formation from the 2021-22 period.
Bitcoin May Be Inside A Bear Flag Right Now
In a new post on X, analyst Ali Martinez has highlighted a similarity that has been rising between the Bitcoin price pattern from 2021-22 and that from 2025-26.
Below is the chart shared by Martinez that places the 2 intervals side-by-side.
As is seen in the graph, Bitcoin noticed a 54% drawdown during the first half of 2021, before witnessing another leg of the bull run to a new all-time high (ATH) above $69,000 later in the yr.
This high was adopted by a bearish shift, with the price rapidly sliding off as 2022 arrived. In 2022, the cryptocurrency noticed consolidation inside a technical analysis (TA) sample recognized as a Bear Flag.
As the title suggests, Flag patterns seem like a flag on a pole. In the case of a Bear Flag, the setup is oriented in the reverse direction; an initial sharp downward transfer represents the “pole,” while a parallel consolidation channel makes up for the “flag.”
When the asset is trading inside the flag, it finds assist at the decrease degree of the channel and resistance at the higher one. A get away of either of these bounds can signal a sustained transfer in that direction.
Flags are thought of to be continuation patterns, which means that breakouts from them are probably to lead into the same direction as the previous price pattern. That is, a breakout might happen in the same direction as the pole.
From the chart, it’s obvious that this seems to be what occurred with Bitcoin back in 2022, with the price escaping downward from the Bear Flag with a sharp crash.
Jumping to the current Bitcoin price motion, the cryptocurrency noticed a comparable trajectory in 2025 as in 2021, with an initial leg of the bull run main to a second one that resulted in a new ATH (this time above $126,000). One distinction, however, was that the legs of this bull market had been separated by a price decline of just 30%.
Since the latest document, BTC has once again confronted a bearish transition, with its price plummeting to a low in November and starting a period of consolidation. The analyst thinks that the latest section of sideways motion could possibly be occurring inside a Bear Flag, comparable to the one from 2022.
It now stays to be seen whether or not the cryptocurrency’s trajectory is certainly comparable this time around as properly or if the 2 cycles will diverge.
BTC Price
Bitcoin has seen a setback in its recovery as its price has dropped back to $91,000.
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