At one point on Tuesday falling to just under $75K, the $BTC price has since recovered strongly and is firmly back inside its bullish flag. Did the weaker hands sell? Is the Bitcoin price get
At one point on Tuesday falling to just under $75K, the $BTC price has since recovered strongly and is firmly back inside its bullish flag. Did the weaker hands sell? Is the Bitcoin price getting ready for an explosive upside move, perhaps into the end of this year?
Source: TradingView
Bitcoin bulls will breathe a sigh of relief to see the $BTC price firmly back inside the parallel channel after the potential drop down to much lower prices was avoided.
What is needed now for a continuation of this bullish price action is for a higher high to be made, followed by a higher low. This would reverse the downward trend in force since early September and enable the $BTC price to rise back to the top of the channel. Resistance levels are in the chart above.
Source: TradingView
The daily chart reinforces the once more bullish case for the $BTC price. A bull flag structure on top of a major rally up through the bear market trendline. What is not to like? What’s more, the 50-day SMA and the 200-day SMA have crossed. This is called a Golden Cross, and will generally take place at or near the beginning of a bull market.
All the bulls really have to do is to keep the $BTC price in the confines of the bull flag for now and the market will do the rest. If, as expected, the price does break out of the top of the channel and surpass the last local high, an explosive upside move could follow.
Taking the bull flag as is (it has been quite difficult to draw given that the pattern does not tilt down in the classic manner) a measured move could potentially take the price up and beyond $100,000.
Source: TradingView
Looking back at this bull/bear market and the previous one, it can be seen that the 50-week simple moving average (SMA) provides some distinctive information and at particular times.
In both bull markets, the 50-week SMA turned over and down shortly after the tops were in, signalling that the bear market had started. For the start of the bull market in 2023 it wasn’t until a good way through Q2 that the 50-week SMA turned up. It was in fact 175 days. If we take the same period for this bull market, the 50-week SMA wouldn’t start turning up until into the last part of December (assuming the bear market bottom was made at the end of June this year). We would then presumably be well into the first phase of the bull market.
It is also worth noting that once the price gets above the 50-week SMA it then stays above, retesting it as support throughout the bull market. The exception to this was the Covid dip in March 2020.
If the $BTC price, currently in the confines of the bull flag, can get above the 50-week SMA and hold there, it would not be expected to fall back below for the whole of the coming bull market.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
