![\"Bitcoin](\"https:\/\/pbs.twimg.com\/media\/G-LJf2yWQAAr4Xr?format=jpg&name=medium\")
<\/p>\nA cryptocurrency analyst has pointed out how Bitcoin could risk a crash to $69,230 if the support level of this Bear Pennant doesn’t hold up.<\/p>\n
In a new Bear Pennant.<\/p>\n
A Pennant is a pattern from technical analysis (TA) that’s similar to a Flag. Both of these patterns are characterized by an initial sharp move (commonly known as the “pole”) and a subsequent phase of consolidation. But unlike Flags, which involve a parallel consolidation channel, Pennants involve a triangular channel instead.<\/p>\n
When the price is trading inside the consolidation portion of the Pennant, it encounters resistance at the upper line and support at the lower one. A breakout of either of these levels may signal a sustained move in that direction. Pennants are generally considered to be continuation patterns, so a move may be more likely to take place in the same direction as the pole. In a Bear Pennant, the pole is represented by a downward move, implying that a bearish continuation could succeed the pattern.<\/p>\n
Now, here is the chart shared by Martinez that shows the Bear Pennant that Bitcoin has been trading inside on the daily timeframe over the last couple of months:<\/p>\n
As displayed in the above graph, Bitcoin retested the upper line of the Pennant’s consolidation region when its price surged above $94,000. This retest ended up in rejection, and the coin has since retraced to lower levels.<\/p>\n
If the current trajectory in the cryptocurrency continues, it’s possible that a retest of the support level could take place, which is situated around $87,200. Since the pattern involved here is a Bear Pennant, BTC failing a retest of this line could signal a bearish breakout.<\/p>\n
Pennant breakouts are usually considered to lead to a move that’s similar to the pole in length. Based on this, BTC’s breakout target from the current pattern could lie near $69,000. “Bitcoin $BTC must hold above $87,200 to avoid a drop toward $69,230,” explained the analyst.<\/p>\n
![\"Bitcoin](\"https:\/\/pbs.twimg.com\/media\/G-JNs4tWUAAlJRM?format=jpg&name=4096x4096\")
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