Definition ∞ A bear flag is a technical analysis chart pattern indicating a temporary pause in a downward price trend, often preceding further declines. It forms after a sharp price drop, followed by a short period of upward or sideways consolidation within parallel trendlines. This pattern suggests that selling pressure will likely resume, driving prices lower. Traders interpret it as a continuation pattern for bearish movements.
Context ∞ In cryptocurrency news, discussions of bear flag patterns are common among market analysts and traders assessing short-term price movements. News articles often reference this pattern when speculating on potential price corrections or continued downward trends for digital assets. Understanding this technical indicator helps readers interpret market sentiment and short-term price predictions. It provides a framework for analyzing potential market downturns.
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