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Bitcoin Daily Chart – Source: Tradingview.com

The price of Bitcoin recorded an extremely bearish move in yesterdays price action.

Price broke from a consolidation it had been forming all week between $4075 and $3900.

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Price has now broken below another key level around $3670. $3670 was a former breakout point back in December and the low of a range which was established from here.

Some price action managed to break below this range low at $3670 back in late December.

This price action formed a low around $3590 and price is currently finding some liquidity around this point.

Bitcoin Hourly Chart – Source: Tradingview.com

After the initial drop yesterday, price consolidated before following up with another bearish drop.

This successfully formed a bear flag pattern which was noted to be a strong possibility in yesterdays analysis.

The hourly chart shows in closer detail how price quickly broke below the key support level at $3670.

We can also see support coming into play at $3590, the lows of late-December candles.

With price currently consolidating between $3670 and $3590, another drop may be the next significant move, but many traders are likely holding out for a higher price before taking short positions.

Key Takeaways:

  • Bitcoin executes bear flag in yesterdays price action.
  • The bearish drop which took place yesterday broke through two levels – $3900 and $3670.
  • Price is currently finding support around $3590 and consolidating between $3590 and $3670.

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