This is a daily technical analysis by Omkar Godbole, a Coindesk analyst and franchised market technician.
Bitcoin
Price chart shows a good form Trader’s expectations Price rally to $140,000 higher.
According to charting platform TradingView, BTC soared from $74,700 to nearly $111,900 from around $74,700 in the six and a half weeks ending May 22, with trading volumes since then forming the bull flag in a smaller decline range. The flag is identified by the trend line connecting the highs on May 22 and June 9, while the lows hit on June 5 and June 22. Meanwhile, the pole is represented by the initial surge.
To confirm the Bulls’ breakthrough, a relocation of more than $109,000 is required, which will open the door to $146,000. By referring to the method analysts as measuring movement, the level is calculated by adding the length of the pole (initial surge) to the breakpoint.
The bull flag pattern represents a counter-trend within a narrow range, with small volumes combined and then dramatically increasing. The magnitude and duration of the merger tend to be smaller compared to the previous assembly, helping to alleviate short-term expiration conditions and charging the Bull’s engine on the next leg.
“The flags occur in a short period of time,” Charles D. Kirkpatrick wrote in his book Technical Analysis: The Complete Resources of Technicians in Financial Markets. “The volume usually drops throughout the formation of the flag.”
“It is important (but) that it is important to make sure that a complete formation occurs and waiting for a breakthrough,” Kirkpatrick noted.
The flag is a continuation mode, so the merger is expected to be parsed in the direction of the previous upward trend.
Still, failure can happen in two ways. First, the price can jump out of the national flag, marking a bearish reversal. Second, bullish breakouts may fail, which requires continuous monitoring of price action.
That said, Kirkpatrick said the failure rate was low.
Kirkpatrick noted: “Because these patterns have low failure rates, fewer times to go back or backward, shorter times, and trend trends before they occur, they are very good trading patterns.”
