Bitcoin Bull Flag Could Predict 10% Surge To $77,000, Analyst Explains

A financial analyst has shared that if Bitcoin breaks free from the bull flag formation, it may reach a fresh peak price of $77,000 – a new record high.

Bitcoin Has Been Forming A Bull Flag Pattern Recently

On X’s latest update, analyst Ali shares his insights on a potential bull signal emerging in the cryptocurrency’s 4-hour chart. This “bull flag” is a technical pattern recognized by traders, represented by a flag-like formation on a pole.

In this trend, a significant upward surge is followed by a phase of price action moving sideways or slightly downward. The uptrend sets the stage, while the sideways movement functions as the pause before the potential downturn.

When the price is contained within a flag pattern, it often encounters resistance at the upper border, making it likely for price peaks to occur. Conversely, the lower boundary may function as support and contribute to the formation of price valleys or bottoms.

A bull flag is typically viewed as a sign of a continuing trend. After the brief pause indicated by the flag, the trend that was in place before is expected to resume.

When the price surpasses the resistance level, this occurrence might signal the start of an uptrend. The magnitude of this new trend could potentially match the previous upward swing (pole). Conversely, if the price drops below the support line, the pattern may no longer be considered valid.

Another way to describe it: The bear flag pattern resembles the bull flag, but with opposite trends. While a bull flag forms during an uptrend with an angled upward consolidation phase called the pole, a bear flag emerges during a downtrend with a downward consolidation phase, also known as the pole. Following this formation, there’s a likelihood of the prevailing bearish trend continuing.

Here’s a chart provided by Ali, which illustrates the consolidation of Bitcoin’s 4-hour price action within a potential bull flag formation.

Bitcoin Bull Flag Could Predict 10% Surge To $77,000, Analyst Explains

Based on the chart’s representation, Bitcoin’s price over the past few days has seemed to be confined within an uptrending triangle, referred to as a bull flag. Notably, in the previous 24 hours, BTC has managed to surpass the resistance line of this pattern.

The cryptocurrency might be gearing up for a significant price surge if it exhibits stronger trends beyond its current pattern.

“According to Ali’s analysis, if Bitcoin (BTC) remains above $70,000, there is a possibility of it reaching a new record high of around $77,000 – marking an approximately 10% increase from its current price.”

BTC Price

Bitcoins price has recently surpassed $71,300, which is a significant milestone and strengthens the case for a major price increase, known as a breakout. This surge in value over the last week has resulted in Bitcoin investors experiencing gains of over 7%.

Bitcoin Bull Flag Could Predict 10% Surge To $77,000, Analyst Explains

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2024-03-29 02:10