Could A Bitcoin Bull Flag Leave Bears Blindsided
September 27 2021 - 4:00PM
NEWSBTC
Bitcoin price is at a crossroads, either ready to fall into the
troughs of a bear market, or blast off and show the world the bull
run has yet to officially end. But which is it? No one truly knows,
but a technical pattern and the psychology behind it could reveal
the potential outcome ahead of time. Could a potential bull flag
forming on daily timeframes confirm, and lead to what is ultimately
the checkered flag of the current market cycle? Let’s examine the
bullish chart pattern. What Is A Bull Flag? Bitcoin Price Pattern
Targets New All-Time Highs Technical analysis is the study of chart
patterns, sequences, candlesticks, indicators, oscillators and
more. The study is used to improve profitability by using
statistics to increase probabilities of results. This can vary from
finding price targets to sell assets, or finding support and
resistance. A bull flag is a bullish chart pattern and there is
potentially one forming on the daily BTCUSD price chart. It is hard
to say that Bitcoin price action is bullish right now, considering
it was trading at $65,000 only a few months ago, but the pattern
fits the shape. Related Reading | Build Base Or Bust? Bitcoin
Touches Down On Parabolic Support The pattern is characterized by a
long sharp move that creates a flag “pole” followed by
consolidation within a channel which represents the flag itself.
Bull flags are often found slanting slighting downward, as the
pattern gives bears the false sense they are winning, which results
in an even sharper move higher when these traders realized they
were wrong. Will the bull flag pattern confirm? | Source: CME BTC1!
on TradingView.com The Psychology Behind The Chart Pattern Breakout
Bears sure seem to be in charge of Bitcoin price action as of late,
but bulls could be preparing to blindside bears with a breakout of
the bull flag pattern and short squeeze. The psychology of the bull
flag is the perfect setup: A pole is caused by bullish buying and
shorts covering. At the local high, price repeatedly is rejected
making lower highs and lower lows. Bears celebrate and but become
complacent, even adding to losing short positions. Related Reading
| Why Bitcoin Bears Might Not Get To Buy New Lows When bulls gain
the upper hand, the resulting breakout is often even stronger than
the pole itself, because more shorts have piled on who cover,
combined with any incorrect positions that have accumulated during
the pattern itself. Bitcoin price is currently at $43,000, and if
the pattern is valid, based on the measure rule the target would be
closer to $82,000. Serious momentum from buyers and shorts covering
both would be necessary to restart such a powerful trend. Doubling
in value from one price pattern alone would be shocking for bears
and bulls alike, but it would be accurate based on a variety of
factors. For example, the bull flag is touching down on what could
be a parabolic base three, or an Elliott Wave impulse wave five
just beginning. It also could be one big trap for Bitcoin bulls who
could get caught in further downside. Follow @TonySpilotroBTC on
Twitter or via the TonyTradesBTC Telegram. Content
is educational and should not be considered investment
advice. Featured image from iStockPhoto, Charts from
TradingView.com
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