Topping Tail Plus Bear Flag Should Have Bitcoin Bulls Nervous

Bearish signals are mounting on Bitcoin in recent weeks. After making a new all-time high above $123,000, Bitcoin put in a daily topping tail. In technical analysis, topping tails signals the high probability of a reversal in price.

Since the topping tail was put in, sideways chop has ensued. This has created a bear flag pattern, another bearish indicator.

While probability favors the downside, bears should stay cautious. Any daily close above the high of the topping tail candle would negate the bearish pattern and the bulls would take control again. Until then, probability favors the downside.