Bitcoin forming massive weekly bear channel with lesser daily bear channel inside
A bear channel usually breaks to the downside (hence the name) and this one is occurring on the weekly chart, making it all the more credible - especially when combined with another one on the daily.
As can be seen in the above, a lesser bear channel (2) is occurring within the greater bear channel (1).
The lesser channel on the daily:
Looking very ominous indeed! This makes it crazy-important for the bulls to defend the 40.000 USD level.
If it breaks downwards - and the statistical probability for that is high - it might take us all the way down to the 200 MA for - hopefully - a bounce back up somewhere in the mid-twenties after some "line dancing".
Bitcoin broke low on the daily bear flag, as expected, and the bullish counterstrike back above the bottom flag line seems to have been rejected too: