Bitcoin Bull Flag Could Predict 10% Surge To $77,000, Analyst Explains
March 28 2024 - 7:00PM
NEWSBTC
An analyst has explained that a breakout from a bull flag pattern
could lead Bitcoin to surging towards a new all-time high of
$77,000. Bitcoin Has Been Forming A Bull Flag Pattern Recently In a
new post on X, analyst Ali has discussed about a bull flag recently
forming in the 4-hour price of the cryptocurrency. The “bull flag”
here refers to a pattern in technical analysis that, as its name
implies, looks like a flag on a pole. In this pattern, a sharp
uptrend is succeeded by a period of consolidation towards the
downside. The uptrend makes up for the pole, while the
consolidation period acts as the flag. Related Reading: Dogecoin
Soars 17% To Break $0.21 As Volume Explodes When the price is
trapped inside the flag, it tends to find resistance at its upper
line, so tops may be probable to form there. Similarly, the lower
line may act as support, thus facilitating for bottoms to take
shape. The bull flag is usually considered to be a continuation
pattern, meaning that the prevailing trend (that is, the trend of
the flag) would continue once the consolidation period is over.
This happens when a break above the resistance line takes place.
The uptrend emerging out of such a break may be of the same height
as the pole. If the asset falls under the support line, though, the
pattern could be considered invalidated. Like the bull flag, there
is also the bear flag pattern, which works similarly except for the
fact that the pole in this case corresponds to a downtrend while
the flag is generally a consolidation channel angled upwards. Just
like the bull flag, a continuation of the prevailing bearish trend
may follow this formation. Now, here is the chart shared by Ali
that shows the bull flag that BTC’s 4-hour price has recently been
consolidating inside: Looks like the price of the asset has been
breaking out of this pattern recently | Source: @ali_charts on X
From the graph, it’s visible that the 4-hour Bitcoin price has
appeared to have been consolidating inside this bull flag over the
last few days. It’s also apparent that, in the past day, BTC has
been climbing above the resistance line of the pattern. This could
mean that the cryptocurrency is preparing a break out of this
formation. Naturally, the asset would have to show more momentum
before the breakout can be confirmed. Related Reading: Bitcoin
“Liquid Inventory Ratio” Hits All-Time Low, What It Means “If BTC
holds above $70,000, we could see a surge of nearly 10% to a new
all-time high of $77,000!” says Ali. The analyst has chosen this
target as such a swing would be of the same length as the pole that
had preceded this flag. BTC Price Bitcoin has so far been heading
in a direction that would add more credence to the breakout, as its
price has now broken past the $71,300 level. With this surge, BTC
investors would be enjoying profits of more than 7% over the past
week. The price of the asset appears to have surged over the past
24 hours | Source: BTCUSD on TradingView Featured image from
Shutterstock.com, charts from TradingView.com
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