- Bitcoin price shows a bearish pennant breakout, hinting at a 42% crash to $11,202.
- Ethereum price looks to find a stable support floor to trigger a breakout of the $1,284 hurdle.
- Ripple price might revisit the four-hour demand zone, extending from $0.286 to $0.306, in an attempt to rally.
Bitcoin price has formed an extremely bearish setup that could trigger a sell-off not just for itself but the entire market as well. Adding credence to this outlook is the June month’s Consumer Price Index announcement that is scheduled to be released on Wednesday at 12.30 GMT.
The forecasts suggest that the CPI could be 8.8%. The last announcement was on June 10, when the actual CPI exceeded forecast, triggering a sell-off in Bitcoin price from roughly $30,000 to $17,600.
Hence, investors need to pay close attention to today’s announcement and how BTC could react to it.
Bitcoin price reveals a bearish outlook
Bitcoin price action between June 6 and July 13 seems to have formed a bearish pennant. This technical formation contains a flagpole and a pennant and is termed a continuation pattern.
The 42% sell-off between June 6 and June 18, which pushed BTC to form a swing low at $17,591, forms the flagpole. And the consolidation that followed in the form of lower highs and higher lows is termed a pennant.
This setup forecasts a 42% downswing to $11,202, obtained by adding the flagpole’s height to the breakout point at $19,623, which occurred on July 12. This development adds confirmation to the bearish future for BTC.
BTC/USD 1-day chart
While things are looking gloomy for Bitcoin price, a quick recovery above $22,559 – the 200-week Simple Moving Average (SMA) – will invalidate this bearish pennant formation. In such a case, investors can expect BTC to attempt a move to $25,000.