Bitcoin's Bull Flag Formation Signals Potential Surge; Analysts Discuss Possible Dip and Rally
Summary:
Bitcoin's "bull flag" formation on the daily chart suggests potential upward momentum for the cryptocurrency. Crypto analyst Mikybull suggests this as a sign of an explosive markup. Zivoe's Denis Baca sees this as a robust bullish setup possibly moving towards the $100,000 mark. Nexo's Andrey Stoychev, however, believes significant price rises could remain unrealized without a substantial catalyst. Both analysts warn of a potential dip before climbing to new peaks, creating buying opportunities for traders.
Daily charts revealed a "bull flag" formation for Bitcoin (BTC), often interpreted as a sign of significant positive trajectory for the cryptocurrency. Does this provide inklings of an impending bull run following halving? Acclaimed crypto analyst, Mikybull, pointed towards Bitcoin's "bull flag" iteration on the daily chart yesterday, surmising that according to Wyckoff's law, "the longer the consolidation, the more explosive the markup may be."
Zivoe's head of product, financial analyst Denis Baca, labels this recent chart pattern as "a robust bullish setup." He stated that the portrayed bull flag implies potential upward drift and post strong performance, underpinned by diminishing volume, seems poised for a jump towards the $100,000 mark.
Yet, Andrey Stoychev, Nexo's prime brokerage head, opines that Bitcoin might not ascend swiftly without a substantial catalyst. While the cryptocurrency did reflect capacity for further upswing after retesting the $64,000 barrier, he believes Bitcoin might merely touch the trading range's upper bands, around $67,000.
Traders are advised to watch the $65,000 Bitcoin price tier, where surpassing it could obliterate upwards of $500 million in total leveraged short stakes, as noted by Coinglass.
Even though Bitcoin appears to have solidified its stand above the $60,000 line, Baca warns of a potential dip below before climbing to new peaks. Projecting credible buying opportunities during such falls, he stated, "Historically going into May, we see Bitcoin fade to retest support of the 20-week SMA, which would put Bitcoin at $56,000. I think such a move would be healthy before going higher."
However, Stoychev believes Bitcoin wouldn’t dip past the $60,000 mark, unless high US interest rates persisted longer than expected, influencing digital assets sentiment throughout 2024. If Bitcoin does plunge below $60,000, over $1.4 billion in cumulative leveraged long positions would be wiped out, as reported by Coinglass. Expert advice is to conduct independent research and be aware of investment and trading risks before making any decisions.
Published At
4/26/2024 7:42:07 PM
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