Bitcoin Bounce A Bull Trap? Analyst Sees 2022-Style Bear Flag
A cryptocurrency analyst has identified how the latest Bitcoin value motion might echo the bear flag formation from the 2021-22 interval.
Bitcoin May Be Inside A Bear Flag Right Now
In a brand new post on X, analyst Ali Martinez has highlighted a similarity that has been rising between the Bitcoin value development 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 within the graph, Bitcoin noticed a 54% drawdown in the course of the first half of 2021, earlier than witnessing one other leg of the bull run to a brand new all-time high (ATH) above $69,000 later within the 12 months.
This high was adopted by a bearish shift, with the value rapidly sliding off as 2022 arrived. In 2022, the cryptocurrency noticed consolidation inside a technical analysis (TA) sample generally known as a Bear Flag.
As the title suggests, Flag patterns appear like a flag on a pole. In the case of a Bear Flag, the setup is oriented within the reverse course; an preliminary sharp downward transfer represents the “pole,” whereas a parallel consolidation channel makes up for the “flag.”
When the asset is buying and selling contained in the flag, it finds help on the decrease stage of the channel and resistance on the higher one. A get away of both of those bounds can sign a sustained transfer in that course.
Flags are thought of to be continuation patterns, that means that breakouts from them are prone to lead into the identical course because the previous value development. That is, a breakout might happen in the identical course because the pole.
From the chart, it’s obvious that this seems to be what occurred with Bitcoin again in 2022, with the value escaping downward from the Bear Flag with a pointy crash.
Jumping to the latest Bitcoin value motion, the cryptocurrency noticed an analogous trajectory in 2025 as in 2021, with an preliminary leg of the bull run resulting in a second one which resulted in a brand new ATH (this time above $126,000). One distinction, nonetheless, was that the legs of this bull market have been separated by a value decline of simply 30%.
Since the most recent report, BTC has as soon as once more confronted a bearish transition, with its value plummeting to a low in November and starting a interval of consolidation. The analyst thinks that the most recent part of sideways motion may very well be occurring inside a Bear Flag, much like the one from 2022.
It now stays to be seen whether or not the cryptocurrency’s trajectory is certainly related this time round as effectively or if the 2 cycles will diverge.
BTC Price
Bitcoin has seen a setback in its restoration as its value has dropped again to $91,000.