The reasoning behind this bullish projection is the formation of a bull flag pattern on the daily timeframe of the Bitcoin price chart. The bull flag is a technical analysis pattern characterized by a period of steep upward movement (the flagpole) typically followed by sideways or slightly downward price action.
According to Severino, the Bitcoin price could well be on its way to a new all-time high if this bull flag is valid and the price successfully breaks out of the pattern. The target for this chart pattern is usually determined by adding the vertical height of the flagpole to the potential breakout point from the flag.
A close beneath the lower band, which sits just beneath the $101,000 mark, could suggest downside action for the Bitcoin price. As of this writing, the price of BTC stands above $105,000, reflecting an almost 2% increase in the past 24 hours.
