This Bullish Continuation Pattern Suggests Bitcoin Is Gearing For Another Lift-Off

Aayush Jindal

1 year ago

2 mins read

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Bitcoin climbed higher above $9,500, but it struggled to clear $9,600 against the US Dollar. BTC is now correcting gains and it seems like there is a bullish flag forming with resistance at $9,450.

Bitcoin is currently correcting lower from the $9,595 swing high.
The price is trading well below the $9,500 pivot level and testing the 100 hourly simple moving average.
There is a bullish flag pattern is likely forming with current resistance near $9,450 on the hourly chart of the BTC/USD pair (data feed from Kraken).
The pair could dip a few points, but it is likely to surge above $9,500 as long as the $9,250 support holds.

Bitcoin Price Could Continue Higher

After a strong recovery wave, bitcoin price extended its rise above the $9,500 resistance against the US Dollar. BTC even surpassed the $9,580 level, but it faced sellers near the $9,600 level.

A high is formed near $9,595 and the price is currently correcting lower. It declined below the $9,500 level and the 100 hourly simple moving average. The decline was such that the price even tested the 50% Fib retracement level of the recovery wave from the $8,907 swing low to $9,595 swing high.

It seems like there is a bullish flag pattern is likely forming with current resistance near $9,450 on the hourly chart of the BTC/USD pair. To continue higher, bitcoin must break the channel resistance zone at $9,450.

Bitcoin Price Tops Near $9,600: Source: TradingView.com

An immediate resistance is near the $9,500 level, above which the bulls are likely to aim a clear break above the $9,600 resistance zone. The next major resistance is seen near the $9,800 level, followed by the all-important $10,000 barrier (as discussed in yesterday’s analysis using the daily chart).

Downside Break in BTC?

If bitcoin struggles to surpass the channel resistance and $9,500, there is a risk of another bearish reaction. The first major support is near the $9,250 level.

A downside break below the $9,250 support could negate the current bullish view. In the stated case, the price could continue to decline towards $9,080 or the 76.4% Fib retracement level of the recovery wave from the $8,907 swing low to $9,595 swing high. Any further losses could lead the price towards $9,000.

Technical indicators:

Hourly MACD – The MACD is slowly moving in the bullish zone.

Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is currently below the 50 level, with a bearish angle.

Major Support Levels – $9,250 followed by $9,080.

Major Resistance Levels – $9,450, $9,500 and $9,800.

Aayush Jindal

Aayush Jindal, a luminary in the world of financial markets, whose expertise spans over 15 illustrious years in the realms of Forex and cryptocurrency trading. Renowned for his unparalleled proficiency in providing technical analysis, Aayush is a trusted advisor and senior market expert to investors worldwide, guiding them through the intricate landscapes of modern finance with his keen insights and astute chart analysis.

From a young age, Aayush exhibited a natural aptitude for deciphering complex systems and unraveling patterns. Fueled by an insatiable curiosity for understanding market dynamics, he embarked on a journey that would lead him to become one of the foremost authorities in the fields of Forex and crypto trading. With a meticulous eye for detail and an unwavering commitment to excellence, Aayush honed his craft over the years, mastering the art of technical analysis and chart interpretation.
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