Bitcoin Technical Analysis Reveals ‘Bull Flag’ Hinting at Price Boom to $140K

This is a daily technical analysis of Coindeska analyst and an authorized market technician Omkar Godbole.

Bitcoins

The price chart shows a well -shaped “bull flag”, suggesting a potential escape to a new lifelong maximum in accordance with some The expectations of traders For a price assembly at $ 140,000 and higher.

BTC during six and a half weeks ended 22nd. May rose to a record maximum of almost $ 111,900 out of approximately $ 74,700, and has been traded to a slightly declining extent since then and created a bargain flag according to the tradingView platform. The flag is identified by trend lines connecting the maximum of 22 May and 9 June and the minimum reached 5 June and 22 June. Meanwhile, the pole is represented by an initial increase.

To confirm the bull’s escape, it is necessary to move over $ 109,000 to open a door for a collection at $ 146,000. The level is calculated by adding the length of the pole – the initial overvoltage – to the point of breaking by means of a technical analyst method called the measured movement.

The Bull Flag formula represents a low volume consolidation within a narrow range, which is preceded by a sharp increase. Consolidation tends to be less in extent and duration than the previous rally, which helps to alleviate short -term conditions of the exaggerated and recharge the bull engines for another leg higher.

“Flag formations occur in a short period – usually several days to several weeks,” wrote Charles D. Kirkpatrick in his book, Technical Analysis: A complete source for financial market techniques. “Volume usually decreases during the formation of the flag.”

“[However]It is important to be cautious to ensure that there is a complete formation and wait to escape, ”said Kirkpatrick.

The flags are the formulas of the sequel, so it is expected that consolidation will be solved in the direction of the previous uptrend.

However, two ways may still fail. First, prices can immerse themselves from the flag and mark bear conversion. Second, a bull escape may fail, which requires continuous tracking of price action.

This means that the failure rate is low according to Kirkpatrick.

“Because these patterns have a low level of failure, few moves or returns, a short period of time and steep trends in the previous and after their events, they are very good business patterns,” Kirkpatrick said.