Bitcoin’s bullish flag suggests that the price could surge above $70,000 as a classic technical indicator suggested that the world’s leading cryptocurrency can become even more valuable as we can see more in our latest bitcoin news today.
Dubbed as Bull Flag, the chart pattern forms once an asset consolidates to a brief period after a huge price surge. It looks like the downside channel was denoted by two parallel trendlines where the price will fluctuate. During this period of consolidation, the volume drops. The cryptocurrency checked out most of the requirements that suggest it is in a bull flag as it was preceding the trend to the upwards. Second, it is trading in the area defined by Bitcoin’s bullish flag with two parallel trendlines. And third, the net bearish retracement compared to the flag top is lower than 19% which is a pullback of more than 50% that can invalidate the flag theory.
The retracement expired after the price corrected by 38% from the sessional top and the traders are now looking to enter a long position on a breakout above the high of the flag’s upper trendline. The upside target sits at a length equal to the size of the uptrend before the Flag formation and the flagopole hit $15,469. Not confirmed but BTC risks form a bearish technical structure that will reject a breakout move above $58,500.
This level capped the crypto from breaking upwards during the late February session and on the next attempt, the price surpassed $58K to form a record high at $61,778. The crypto dropped to $58,500 all over again as resistance after its 19 percent correction. Now, BTC is testing the $58,500 to the upside which constitutes a potential head and shoulder indicator that is a bearish reversal pattern. The breakout brings risks that can crash Bitcoin by the height of the pattern’s neckline support and its top which comes to be $16,339.
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