Bitcoin’s Bull Flag: Consolidation Before the Next Move
Bitcoin is currently consolidating in a bull flag pattern, indicating a potential upward push. The key level of $48,000 is within reach, as it only requires an 11% price increase.
Bitcoin has been following its expected trajectory, with a significant upward move throughout 2023. The possibility of reaching $48,000, and even $50,000, by the end of the year is becoming more likely.
Bitcoin’s Sideways Consolidation
Since mid-September, bitcoin has been displaying a pattern of upward movement, followed by consolidation, and then another upward move. During this three-month period, the price of bitcoin has surged by approximately 74%.
After consolidating sideways with an upward bias from October 23 to December 1, bitcoin has started to accelerate its upward momentum. Short periods of consolidation within small triangle patterns or flags are only temporary.
The current flag formation shows a significant price dip, but bulls quickly stepped in to buy, indicating the strength of bitcoin.
Altcoins May Come Back into the Picture
Bitcoin’s dominance, as shown by the BTC dominance chart, has been rejected from the top of an upward leaning wedge pattern. This rejection suggests that altcoins may start to gain prominence once again. However, if bitcoin breaks out of its current flag pattern, altcoins might have to wait for their turn.
If bitcoin breaks below the bottom of the current flag, the next support level is around $42,000, which is the top of the previous ascending triangle. Traders should exercise caution and effectively manage their risk during this period.
Hot Take: Bitcoin’s Bullish Trend Continues
Bitcoin is consolidating in a bull flag pattern, hinting at a potential move to the upside. With the key level of $48,000 not too far away, bitcoin’s upward trajectory remains intact. Despite short periods of consolidation, the overall trend has been bullish, allowing for significant price gains over the past months.
While altcoins may have a chance to regain prominence if bitcoin’s dominance falters, all eyes are on bitcoin’s next move. Traders should monitor the current flag formation and exercise caution, considering key support levels and effectively managing risk.
By
By
By
By