One analyst has explained that a breakout of a bullish flag pattern could lead bitcoin to a new all-time high of $77,000.
bitcoin Has Been Forming a Bullish Flag Pattern Recently
in a new mail On X, analyst Ali talked about a bull flag that recently formed in the 4-hour price of the cryptocurrency. The “bullish flag” here refers to a pattern in technical analysis that, as the name implies, looks like a flag on a flagpole.
In this pattern, a strong uptrend is followed by a period of downward consolidation. The uptrend offsets the pole, while the consolidation period acts as a flag.
When the price gets trapped inside the flag, it tends to find resistance on its upper line, so highs are likely to form there. Likewise, the bottom line can act as support, thus making it easier for bottoms to take shape.
The bull flag is generally considered a continuation pattern, meaning that the predominant trend (i.e. the flag trend) will continue once the consolidation period ends.
This happens when a breakout occurs above the resistance line. The uptrend that arises from such a breakout may have the same height as the pole. However, if the asset falls below the support line, the pattern could be considered invalidated.
Like the bullish flag, there is also the bearish flag pattern, which works similarly except for the fact that the pole in this case corresponds to a bearish trend, while the flag is generally a consolidation channel with an angle upwards. Like the bullish flag, this formation can be followed by a continuation of the prevailing downtrend.
Now, here is the chart shared by Ali showing the bullish flag that the 4-hour price of btc has recently been consolidating inside:
<img decoding="async" class="alignnone aligncenter" src="https://technicalterrence.com/wp-content/uploads/2024/03/Bitcoin-Bull-Flag-Could-Predict-10-Rise-to-77000-Analyst.jpeg" alt="bitcoin bull flag” width=”2219″ height=”1511″ loading=”lazy”/>
Looks like the price of the asset has been breaking out of this pattern recently | Source: @ali_charts on X
From the chart, you can see that the 4-hour bitcoin price appears to have been consolidating within this bullish flag over the past few days. It is also evident that, in the last day, btc has been rising above the resistance line of the pattern.
This could mean that the cryptocurrency is preparing a breakout from this formation. Naturally, the asset would have to show more momentum before the breakout can be confirmed.
“If btc stays above $70,000, we could see a nearly 10% rise to a new all-time high of $77,000!” Ali says. The analyst has chosen this objective because said swing would be the same length as the staff that preceded this flag.
btc Price
So far, bitcoin has headed in a direction that would add more credibility to the breakout as its price has broken through the $71,300 level. With this increase, btc investors would enjoy gains of over 7% over the past week.
<img loading="lazy" decoding="async" class="alignnone size-medium aligncenter" src="https://www.tradingview.com/x/FtPmO3Fc/" alt="bitcoin price chart” width=”1534″ height=”854″/>
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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