Crypto: Bitcoin Chart Pattern, Whale Activity Warn Of Another 20% Price Drop

Bitcoin has formed a classic bearish pattern on its daily chart, and if confirmed, a price drop to $56,000 could be on the cards.

A developing bear pennant keeps a BTC price drop toward $56,000 in play.

Rising whale inflows to Binance further the downside outlook.

Bitcoin (BTC) may slide deeper into February as its bearish chart structure converges with renewed whale activity on Binance.

Bitcoin has been painting what appears to be a bear pennant setup on its daily chart.

A bear pennant pattern forms when the price consolidates inside converging trendlines after a sharp drop, called the “flagpole.” It often resolves with another leg down, roughly matching the initial decline.

On BTC’s chart, the structure emerged after the steep sell-off toward the $60,000 zone. The price has since compressed into a tightening triangle while remaining below key moving averages, signaling weak momentum.

A decisive breakdown beneath the pennant support could open the door to a move below the $56,000 mark, roughly 20% below the current levels, in February.

Conversely, a break above the pennant’s upper trendline, aligning with the 20-day exponential moving average (20-day EMA; the green wave) at around $72,700, may invalidate the bearish setup altogether.

As of Feb. 17, Bitcoin’s whale inflow ratio (7-day average) had spiked to a record high of 0.619 compared to 0.40 at the month’s beginning, according to data resource CryptoQuant.

Source: CoinTelegraph