Crypto Update - Bitcoin Bull Flag
I’m going to be sending a quick update periodically when I see something really interesting on a Crypto chart, so this is not a full post, just an important update. I may well include this in a full post tomorrow.
Bitcoin has made it back to short term resistance, so I have edited the hourly chart and there is now a clear high quality bull flag on Bitcoin that should break up soon.
BTCUSD 60min chart:
An hourly sell signal fixed last night and has now largely made target. It is worth noting that we could see a retracement to flag support, currently in the 58,350 area. If see that would be a strong buy opportunity.
On a break up over flag resistance, currently in the 63,200 area, the flag target would be a retest of the late September high at 66.5k. My lean would be that Bitcoin would likely then continue to test larger bull flag resistance, currently in the 69,000 area.
I would give this setup an 80% probability of breaking up into that 66.5k area, taking into account that bear flags sometime break down instead. There is a possibility if we do see another test of flag support that, given that the bull flag is a falling wedge, we could see a slight break below flag support in a bullish underthrow before the flag then breaks up.