Bitcoin prices now exceed $107,000 after a bullish trading week when the best cryptocurrencies rose 4.89%. Interestingly, this recent price rally changes to a 1.06% increase on the monthly chart, suggesting a gradual change in market management to the Bulls after several weeks of descent integration.
Notably, a well-known market analyst who identified the bull flag pattern on the Bitcoin Daily Chart along with the well-known MACD crossover, taking into account traders’ support for this new bullish momentum.
The Bull Flag Pattern shows the potential for a strong rise in Bitcoin
Bull flags are a classic bullish continuation pattern that shows that despite continued integration, price gatherings are likely to last. As seen in shared charts Merlijn, this bullish chart pattern starts with the flagpole seen when Bitcoin began a rising trend in early April and prices rose actively in late May from around $74,000 to over $110,000.
The flagpole is followed by a flag/pennant, which is the period of price consolidation that forms a downward or sideways channel. This price movement will be integrated within the downward channel, mainly $101,000-$110,000, from when Bitcoin hit a new all-time high on May 22nd. Flags are usually interpreted as a short cooling period before momentum resumes in the direction of the original trend.
Interestingly, recent candle movements show breakouts from the boundary above the bull flag, indicating that the uptrend may resume soon. Based on Merlijn’s analysis, if a breakout is confirmed in decisive proximity, the measured movement of the new price rally is usually similar to the length of the initial flag pole, referring to a $144,000 target.
In supporting this bullish case, market analysts have also observed recent crossovers on moving average convergence divergence (MACD) indicators. In particular, the MACD line (blue) crosses from the bottom above the signal line (orange) and is often interpreted as a purchase signal by a trader. Interestingly, this comes when Bitcoin marks its first positive crossover in June and tests the Bull Flag upper band.
As both price action and technical indicators suggest an imminent breakout, Merlijn will fine-tune the frontrun or risk FOMO after completing this rally fully into the frontrun or risk FOMO. However, it is recommended that all market participants do due diligence before making an investment decision.
Bitcoin price overview
At the time of writing, Bitcoin is handed over for $107,485 after an increase in miners of 0.03% on the last day.
Special Images from Reuters, TradingView Chart
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