Bitcoin’s Line In The Sand: Bear Flag Or Bounce?

[music] Hello everybody, Drew Dosi here with Verified Investing. Today we've got some crypto charts to take a look at. We're going to break down four of the key and major movers as far as in the news as well as on the charts. But we can't forget Bitcoin. So Bitcoin's also included with those. Obviously, that is nearly the most talked about cryptocurrency out there. Actually, it is. So, let's jump into some technical analysis, break down these charts. There's some good opportunities here in the crypto space when we've got the volatility. All right. Now, Bitcoin, as you can see here, we've got the daily chart displayed. All right. Now, I want to kind of give you a bird's eyee view, and at least now's current price, but I want to back out a little bit further and illustrate what's going on here with Bitcoin. We've got on a larger weekly time frame, we've got a left shoulder, a head, and a right shoulder. price action has broken that and price has not yet gotten back above that neckline that you see in the inclining trend line where my mouse is roughly $89,832 by the week of October 26th. So that's the key level in uh on the chart basically the line in the sand for Bitcoin to wash away any of the negative um price action which has been materializing down here in the lower portion of this parallel channel. The good news on Bitcoin near-term though guys, it's holding above this horizontal trend line which was the low from this week in November 17th. You can see that level rejected price on a couple attempts. Then we consolidated and then broke above and price is doing whatever it can. The bulls are doing a good job defending this trend line so far. That's the near-term line in the sand to the downside. $80,524. The bulls have continued to defend this. Now, the bad news here on the daily time frame, look at this pattern. After consolidating near the top, we pushed down and have since moved sideways to the right. That's a bare flag on the daily time frame. In addition, if I get this trend line connected to this pivot low back in August of 7, August 17th of this year, and then connect this pivot low, you can see when I take price action or the trend line through price action, this is a near-term breakdown on current trend. doesn't mean we're going to completely come back down to the bottom of the parallel, but bulls got to be paying attention to this line. This line really is everything now, holding Bitcoin's current upward momentum, the horizontal trend line where my mouse is at. So, what I've said during trading the close, I said bulls want to see Bitcoin do whatever they can to get price back up in the upper range of this consolidation, then consolidate some more, and then you've got the likelihood and probabilities to shift in your favor to push higher. Every time we knock on that ceiling or knock on the floor, it weakens it. Okay, so we've been hitting recently the floor. We want to get away from that. If you're a bull, that's going to help propel Bitcoin up. But this is the key technicals to watch uh on the downside and to the upside. If we get down under this trend line, then this low pivot comes into play at $75,000 and then we can uh re-evaluate with the patterns that present themselves at that point. But at least this is the current state of what's going on in Bitcoin. Next up into the Ethereum. You can see Ethereum has actually it's got a great recovery from the low today. However, it is it's not as strong as the Bitcoin chart as Bitcoin is still in this bearish consolidation. However, um you can see with this low pivot, price action is is below that low pivot and that's not the case over on Bitcoin. All right. So, um Ethereum, as you see here, just a little bit weaker than Bitcoin. However, I do see a a situation when Bitcoin finally does get above that inclining neckline that I pointed out for the head and shoulders pattern. I think Ethereum's got a destination with this pivot up here from January 28th. You can see I extend that out. Um, and that still comes at $3,041, but I've got an inclining trend line. Uh, price where price is respected from the upper side as well as from the uh downside, too. We've we've respected price on both ends on that trend line. And that just so happens to coincide with that price right around the end of October. So should we get a surge on Bitcoin pushing over that neckline, that's where I see Ethereum coming into a screeching halt for the near term. Likely would be needing some more consolidation to break above that once again. Um but that's where I see the upside destination. Now near-term, you can see um Ethereum caught very got very close to its significant support here. Whenever you can draw a trend line, one that can span several months, hit one pivot, another pivot, and then the third hit is generally a very high probability chance of a bounce situation. So, we got very close to that today. One thing you want to see with Ethereum is price just to continue to separate. You don't want to see price just keep uh continue to curl back over and hang out here, much like consolidating on top of this support level. that could lead to a breakdown which would then bring price on Ethereum back down to $2,000. So, bulls on Ethereum, follow this trend line, $2296. That is a major inflection point um to the downside and to the upside. We're looking at $3,000 um for resistance. All right, next up, guys, we've got Salana. Now, Salana has been pretty popular over the last uh several weeks. And you can see here we've gotten above a a key significant declining trend line that was resistance. Notice how this happened, folks. Look at how we hit into that level. Hit into that level. Hit into that level. Finally breaking up. And now we've got our signature on trading the close breakout retrace bounce play. Now, so far this is uh bouncing up, but not significant. You can see the last three days all just hanging tight right here. I would predict I would um prefer this sort of scenario if you had had you had played it. Yeah, you're in the money. [snorts] Excuse me. However, this just isn't a robust bounce is at least for now. I would likely go ahead and trim the position, get out simply because it's starting to consolidate on top of that line. Now, as long as price holds above here, we've got a chance to push up and retest this $124 mark. And like I said on Bitcoin, if it can get above that inclining uh uh or pardon me that neckline, that inclining neckline uh Salana was trading within this larger parallel channel. You can see we broke down, got back in, and then since the latest breakdown, we haven't gone back up to test it. That's where I see the bullish case scenario for Salana coming back to test the lower range of this parallel channel right around $178. Uh last up, guys, we've got uh Chain Link. Now, chain link's been in the news o over this past week regarding one of their expansions around its crosschain inter uh in interparability protocol, the CCIP 2.0, position it as a very nice key controversial talking point for institutional tokenized finance and cross network data transfers. So, this has been getting a lot of coverage. As you can see, we had a significant spike up here. But the reason for the rejection, guys, is what's illustrated on this longer term daily pattern. You can see this low pivot. This is one of the best parts about TA, guys. Draw these low pivots on key lows and low areas and keep them on your charts. I'm going to zoom out and show you why and why it's even more important to do so here in just a few moments. But you can see here pivot to pivot to pivot. Look at that. All these pivots consolidating, hitting it more and more times, weakening it, and then eventually breaking. And we simply have gone back up and retested where we have broken from. Now this is uh a likely scenario. We should get rejected. I don't care how good the news is, how useful this potential token can be. However, um this sort of technical analysis should reject price at that trend line. That continues and will be the line in the sand going up on chain link until that is broken. That is $14.58. Then I'm going to scroll back out and show you where the other resistance comes from from this long-term trend line coming from May of 2021 connected over to that pivot. That's exactly where price got rejected on the last attempt in 2025. And that will be the upward uh trajectory for resistance at $18 uh28. It all depends on when we get there. As you see here, we're starting to curl over and to the downside. Chain link does not want to lose this inclining trend line. Matter of fact, if we have price come down straight in that line, this trend line would be a great buying opportunity for a near-term bounce. We're looking at $10.65. That would be the high pivot back here from May of 26 and the low pivot here in September of 26. So that would all correspond very nicely for a retrace and a very uh significant bounce to retest the $14.78 inclining trend line level of resistance. All right, guys. You can see how on uh cryptocurrency charts, these longerterm trend lines, man, they can really pay off. And it allows you too to have destinations for targets to upside resistance and then play that support, buy the dip, and sell the rip, my friends. All right, thank you so much for tuning in today. My name is Drew with Verified Investing. We look forward for you guys to hang out, enjoy some of these free videos, all these free articles, learn some technical analysis. We'll have them coming for you so to help you set up your next uh winning trade setup. All right, thank you again for watching. We look forward to seeing you next time right here on the charts, folks. Take care.