Bitcoin Slides Toward Ichimoku Cloud as Trader Warns of Bear Flag Breakdown
Bitcoin fell intraday to $86,673 and was trading around $87,208 after partial recovery, according to CoinGecko. Prominent trader Josh Olszewicz (CarpeNoctom) warned that BTC is flirting with a weekly Ichimoku Cloud breakdown — a signal that the prevailing uptrend may be ending and that price could drop to the bottom of the cloud. He also flagged tax-loss harvesting as an additional source of selling pressure late in the year. Olszewicz noted the potential formation and breakdown of a bear flag pattern (a flag pole followed by sideways consolidation), which would indicate a further downside continuation if price breaks the flag’s lower boundary. Key keywords: Bitcoin, BTC, Ichimoku Cloud, bear flag, tax-loss harvesting, volatility. Traders should monitor weekly Ichimoku cloud support, bear-flag lower trendline, and year-end tax-driven selling for short-term downside risk and position sizing.
Bearish
The article highlights technical signals and behavioural selling that point to downside risk. A weekly close into the Ichimoku Cloud or beneath its bottom would signal loss of the dominant uptrend, increasing the probability of extended weakness. The bear flag pattern described is a classic continuation setup; a confirmed breakdown of the flag’s lower trendline often leads to accelerated selling as stop-losses trigger. Added to this, year-end tax-loss harvesting can produce concentrated, non-fundamental selling that exacerbates moves initiated by technical breaks. Historically, similar technical breaks on weekly timeframes (e.g., prior weekly cloud breakdowns or bear-flag breaks) have led to pronounced short-to-medium-term declines because institutional and algorithmic players react to clear technical breaches. Short-term implication: heightened volatility and increased downside risk — traders may reduce long exposure, tighten stops, or look for short opportunities on confirmed breaks. Long-term implication: if price holds above the cloud or reclaims it quickly, the bearish signal may fail; but a sustained weekly close below the cloud would shift medium-term bias lower and could prompt re-evaluation of bullish thesis until new support and accumulation emerge.