Do We Have High Bitcoin Flag?
Bitcoin fell about 18% since it reached the historic high of $ 61,950.00 (in Binance). This drop is scary, more than $ 150 billion was lost in market value in about 4 days. But counting the loss, in the same proportion, we must count the gain: BTC has surged surreally since October / 2020.
But what does this correction on the chart mean?
We can see that the correction respects, again, the exact points of Fibonacci at 0.618 where the price makes a rejection when touching. In the same way, previously, it did the same in 0.382.
Next to fibo, we still have a low channel being respected, coinciding the fibo points with the channel limits. Nothing more ‘perfect’ in graphical analysis.
If the price continues to rise from the $ 50,400 support and get up there to test the channel limit, we have…
… A Bitcoin Bull Flag to be completed!
The graphic pattern comes from a higher rise, where we designed a mast, with a correction in a channel, see the chart below.
If we break the flag upwards, at the upper limit of the bearish channel, then we project 100% of the mast to see which is the next bullish target. Again we use fibonacci as a resource to make this projection.
This projection is equivalent to a price of around $ 69,345 what would be a new historic high.
Graphical analyzes are all based on possibilities; we combine the conditions and the hypotheses and come to a possible conclusion. In this case we have:
- If you keep going up to test the upper limit of the low channel
- If you break the channel up
There we projected the possible target of this Bullish Flag in Bitcoin.
But let’s be sure that the other conditions can occur, for example, stopping where you are because you hit EMA21 and keep falling until the next supports.
Everything is probability; Graphical analysis is not an exact science!