a bull flag recently formed on the Bitcoin chart, raising the possibility of a trend reversal soon enough as the flagship crypto makes significant moves upward. This crypto analyst suggests that crypto could rise as high as $100,000 when he makes that move.
Bitcoin’s bull flag suggests more upside
Denis Baca, head of product at Zivoe Finance, noted that the bull flag formation on Bitcoin’s daily chart historically suggests that the crypto token is poised for more upside. He added that the bullish pattern is “taking shape nicely” and that Bitcoin could potentially skyrocket towards $100,000 as soon as the decreasing volume picks up again.
However, Baca further suggested that Bitcoin could fall below $60,000 before it makes such a parabolic movement. He alluded to how the crypto token historically retests the support level of the 20-week SMA (small moving average) in May. This could lead to Bitcoin falling to $56,000, he claimed.
Total crypto market cap currently at $2.2 trillion. Chart: TradingView
Baca opined that such price drops could be “healthy” for Bitcoin before it experiences a reversal. He explained that these dips “offer solid buying opportunities,” which could help spark Bitcoin’s move to record highs.
Crypto analyst Mikybull Crypto Also shared his thoughts on what this bullish pattern could mean for Bitcoin. For his part, he suggested that the formation further proves the continuation of Bitcoin’s bull run and that a bearish reversal was unlikely.
#Bitcoin on a daily chart forming a bull continuity pattern.
According to Wyckoff’s law of cause and effect, “the longer the consolidation, the more explosive the markup will be” pic.twitter.com/ArH0lNnyc2
— Mikybull
Crypto (@MikybullCrypto) April 26, 2024
He also hinted that the next step up could be huge, alluding to Wyckoff’s law of cause and effect, which states that “the longer the consolidation, the more explosive the markup will be.”
Bitcoin needs a catalyst to fuel this uptrend
Andrey Stoychev, head of prime brokerage at Nexo, noticed that a potential price increase for Bitcoin is unlikely to be realized without catalyst. He noted that the flagship crypto token has managed to build resilient support at $64,000, but will continue to trade only around $67,000 without any catalyst.
It is worth noting that the Discover Bitcoin ETFswhich previously served as a major catalyst for Bitcoin’s price increases, has recently suffered declining demand. They have that too experienced a significant net outflow this month, prompting a wave of Bitcoin sell-offs from fund issuers to realize redemptions.
Despite this, Stoychev is confident that Bitcoin will not fall below $60,000. He predicts that the only thing that can cause Bitcoin to return to such levels is if high interest rates are maintained for longer than expected as this may impact sentiment towards crypto assets.
At the time of writing, Bitcoin is trading around $62,900, down more than 2% in the past 24 hours. facts from CoinMarketCap.
Featured image from Pixabay, chart from TradingView
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