Bull flag pattern (with potencial 50% profit R:R 2.6 setup 4BTC)

10 ส.ค.After that BAD NEWS unpredictable shakeout ....


Market was warning us but people rally too much on fundamentals.

a

Bitcoin Bull Flag Formation on the 4-Hour Chart

In the chart displayed, we observe a classic Bull Flag formation in Bitcoin's price action, signaling a potential continuation of the ongoing bullish trend. The pattern consists of a sharp upward movement, forming the flagpole, followed by a period of consolidation within a downward-sloping channel, which forms the flag.

Key Observations:

Flagpole: The initial surge in price that formed the flagpole is indicative of strong buying pressure, suggesting that the bulls are firmly in control.

Consolidation Phase: The price action within the flag is characterized by lower highs and lower lows, typical of a flag pattern. This consolidation is healthy as it allows the market to cool off after the rapid ascent.

Volume Analysis: During the formation of the flag, we observe decreasing trading volume, a common feature of bull flags, indicating that sellers are losing momentum. A breakout from the flag with increasing volume would confirm the pattern and likely lead to another leg up.

Potential Breakout: The upper trendline of the flag is a crucial resistance level. A decisive breakout above this line, especially with a spike in volume, would be a strong bullish signal, potentially leading to a continuation of the uptrend towards higher targets.

Price Targets: If the bull flag plays out as expected, the measured move technique suggests a potential price target equal to the length of the flagpole, projected from the breakout point. This could imply significant upside potential for Bitcoin.

Support Levels: Immediate support is observed at the lower trendline of the flag. A breakdown below this level might invalidate the bull flag and could lead to further consolidation or a bearish reversal.

Technical Indicators:

Relative Strength Index (RSI) is currently in the neutral zone, indicating that there is room for further upward movement before reaching overbought levels.
Moving Averages are sloping upwards, aligning with the bullish outlook.
This setup offers a compelling risk-to-reward opportunity for traders looking to capitalize on Bitcoin’s next potential move. As always, prudent risk management is advised, considering the volatility inherent in cryptocurrency markets.

Cheers

12 ส.ค.

ความคิดเห็น