Earlier today, Bitcoin dropped to an intraday low of $86,673 after a period of extreme volatility. The flagship cryptocurrency is currently trading around $87,208 after paring some losses. A prominent trader, Josh Olszewicz, warned that Bitcoin could be on the cusp of another correction. Using the weekly Ichimoku Cloud indicator, he noted the asset is on the verge of breaking down into the cloud.
This would imply the end of Bitcoin’s uptrend and a potential move toward the cloud’s bottom edge. He also cited tax-loss harvesting as a bearish factor, a year-end strategy designed to offset capital gains taxes. He expects this mechanism to add selling pressure in December, potentially accelerating a bear-flag breakdown—an event where a long flagpole leads to a downward breakout. The pattern is described as a bear flag, resembling a flagpole followed by a flag, with a breakdown signaling further downside.
Bitcoin moved lower after a period of volatility, touching an intraday low of $86,673 and hovering around $87,208. The pullback keeps BTC near a critical level as traders weigh the risk of a breakdown and a potential shift in momentum. Using the weekly Ichimoku Cloud, he notes the asset appears to be breaking down into the cloud, which would signal the end of the uptrend and a move toward the cloud’s bottom edge. He also highlighted tax-loss harvesting as a bearish factor, a year-end tactic designed to offset capital gains taxes, likely adding selling pressure in December and potentially accelerating a bear-flag breakdown.
Leave a Reply