Bitcoin prices are currently hovering above $107,000 following a bullish trading week during which the premier cryptocurrency gained by 4.89%. Interestingly, this recent price rally has translated into a 1.06% gain on the monthly chart suggesting a hinting at a gradual shift in market control back to the bulls after several weeks of descending consolidation.
Notably, renowned market analyst with pseudonym Merlijn The Trader backs this emerging bullish momentum, having identified a bull flag pattern on the Bitcoin daily chart, alongside a positive MACD crossover.
The flagpole is followed by the flag/pennant which is a period of price consolidation that forms a downward or sideways-sloping channel. This price movement is from when Bitcoin reached a new all-time high on May 22 till now with prices largely consolidating within a descending channel between $101,000 – $110,000. The flag is usually interpreted as brief cooling-off period before momentum resumes in the direction of the original trend.
Interestingly, recent candle movement shows a breakout from the bull flag upper boundary indicating the uptrend may soon resume. Based on Merlijn’s analysis, if the breakout is confirmed with a decisive close, the measured move for the new price rally, which is usually similar to the length of the initial flagpole points toward a target of $144,000 i.e. a potential 34% on current market prices.
With both price action and technical indicators hinting at an impending breakout, Merlijn nudges investors to front-run this rally or risk FOMO once the move is fully underway. However, all market participants are advised to do their due diligence before making investment decisions.
At the time of writing, Bitcoin exchanges hands at $107,485 after a minor 0.03% gain in the last day.
