Bitcoin Bull Flag Could Predict 10% Rise to $77,000, Analyst Explains
One analyst has explained that a breakout of a bullish flag pattern could lead Bitcoin to a new all-time high of $77,000.
On X, analyst Ali talked about a bullish flag that recently formed in the 4-hour price of Bitcoin. The bullish flag here refers to a pattern in technical analysis that, as the name implies, looks like a flag on a flagpole.
In this pattern, a strong uptrend is followed by a period of downward consolidation. The uptrend offsets the pole, while the consolidation period acts as a flag. When the price gets trapped inside the flag, it tends to find resistance at its upper line, so highs are likely to form there. Likewise, the bottom line can act as support, thus making it easier for bottoms to take shape.
The bullish flag is generally considered a continuation pattern, meaning that the predominant trend (i.e. the flag trend) will continue once the consolidation period ends. This happens when a breakout occurs above the resistance line. The uptrend that arises from such a breakout may have the same height as the pole.
However, if the asset falls below the support line, the pattern could be considered invalidated. Like the bullish flag, there is also the bearish flag pattern, which works similarly except for the fact that the pole in this case corresponds to a bearish trend, while the flag is generally a consolidation channel with an angle upwards.
Like the bullish flag, this formation can be followed by a continuation of the prevailing downtrend.
Bitcoin Has Been Forming a Bullish Flag Pattern Recently
Ali shared a chart on X, in which the 4-hour Bitcoin price appears to have been consolidating within this bullish flag over the past few days. It is also evident that, in the last day, BTC has been rising above the resistance line of the pattern. This could mean that the cryptocurrency is preparing a breakout from this formation.
Naturally, the asset would have to show more momentum before the breakout can be confirmed. “If BTC stays above $70,000, we could see a nearly 10% rise to a new all-time high of $77,000!” Ali says. The analyst has chosen this objective because said swing would be the same length as the staff that preceded this flag.
BTC Price
So far, Bitcoin has headed in a direction that would add more credibility to the breakout as its price has broken through the $71,300 level. With this increase, BTC investors would enjoy gains of over 7% over the past week.
BTC Under Pressure, Will Prices Recover?
Recently, Bitcoin has struggled to rise, watching the price action on the daily chart. The currency remains below all-time highs of $73,800. Although the bulls shook off selling pressure over the weekend, pushing strongly above resistance levels, the follow-through has not been impressive.
Some analysts speculate that the coin could float as high as $100,000 in 2024, especially after the network halved its rewards for miners in April 2024. Despite the recent sell-off that pushed prices to around $62,000, the overall market sentiment remains bullish. The CoinStats Fear and Greed Index, an indicator of investor sentiment, still shows “Extreme Greed” at 80.
Additionally, interest has returned after days of outflows from spot Bitcoin exchange-traded funds (ETFs). As of March 27, data from Lookonchain shows that Fidelity added 4,001 BTC. In total, and taking into account the GBTC exit, all Bitcoin ETF spot issuers added 3,469 BTC.
By Leonardo Perez