Bitcoin prices are currently floating over $ 107,000 after a raisy trading week during which the main Cryptocurrency received 4.89%. Interestingly, this latest price rally has translated into a profit of 1.06% on the monthly chart, which indicates an indication of a gradual change in market control back to the bulls after several weeks of falling consolidation.
Noteworthy, the well -known market analyst with pseudonym Merlijn trader supports this new Haussearted momentum, after identifying a bull flag pattern on the Bitcoin Daily diagram, along with a positive MACD crossover.
Bull Flag patterns strongly signal upward potential for bitcoin
The bull flag is a classic haussearted continuation pattern that indicates that a price collection will probably continue despite ongoing consolidation. As it is seen in the chart shared of Merlijn, this haus -like diagram pattern begins with a strong price rally, ie the flagpole seen when Bitcoin started a trend in early April with prices that climbed aggressively from about $ 74,000 to over $ 110,000 at the end of May.
The flagpole is followed by the flag/pennant, which is a period of price consolidation that forms a downwards or sideway sloping channel. This price movement comes from when Bitcoin reached a new highest time on May 22 until now with prices largely consolidated within a falling channel between $ 101,000- $ 110,000. The flag is usually interpreted as a short cooling period before momentum resumes in the direction of the original trend.
Interestingly, the latest light movement shows a breakout from the bull flag upper limit which indicates that the trend may soon resume. Based on Merlijn’s analysis, if the outbreak is confirmed with a decisive closure, the measured movement points for the new price collection, which is usually similar to the length of the initial flagpole to a target of $ 144,000, ie. A potential 34% at current market prices.
To support this hausse case, market analysts have also observed a recent transition on Moving Average Convergence Diver’s (MACD) indicator. Noteworthy, the MACD line (blue) has crossed over the signal line (orange) from below, often interpreted as a buyer signal. Interestingly, this marks the first positive transition in June and comes when Bitcoin tests the upper band on the bull flag.
With both price measures and technical indicators that suggest an imminent breakout, Nudge’s investor to front rally or risks going when the move is entirely going on. But all market participants are recommended to make their due diligence before making investment decisions.
Bitcoin price overview
At the time of writing, Bitcoin exchange hands to $ 107,485 after a less 0.03% win on the last day.
Image from Reuters, charts from TradingView
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