in ,

Bitcoin Price Holds $4k, Bull Flag Possibly Formed

Bitcoin (BTC) is maintaining stability above the critical $4,000 price mark, after making an important breakout to the upside in the last day or so. The leading crypto has established itself, in the short term, above the February-March uptrend – and perhaps more importantly, is making inroads into the 2018 linear downtrend resistance zone.


Currently ranging sideways, Bitcoin price action has all the hallmarks of a bull flag. A move higher would retest the previous support/resistance (S/R) zone put in in late February, resting between $4,100-4,200.


However, a failure to break up again would not wreck the almost two-month-long positive Bitcoin narrative: Continued sideways consolidation will give altcoins runway for further gains (which have already been considerable, lately); and there remains a $100 cushion between the current BTC price and the local uptrend support (the green field, below).


A slightly longer view of the broad Bitcoin trend is an uptrend channel (below), intact since late February. A further Bitcoin push higher from here, according to this pattern, would yield a target price of about $4,130. Somehow breaking down out of this channel, Bitcoin would encounter several S/R zones to stop a capitulation all the way back down to the regional uptrend around $3,500. Even hitting this area would not be disastrous.


A view of Bitcoin’s daily chart shows us in the middle of three trends of varying gravity: The critical yearly (linear chart) downtrend, which has rebuffed Bitcoin all through 2018 (red field); the regional S/R zone surrounding $4k (purple); and the local uptrend support/channel that Bitcoin has respected for over a month. This confluence is pictured in the purple circle, below.


It is this chartist’s opinion that breaking the yearly downtrend – with any amount of force – is the most important event to watch right now, even if local price action is also exciting.


What do you think?

345 points
Upvote Downvote

Written by Ravi Gupat

Ravi grew up in India and graduated in Economics. He is a serial entrepreneur who has founded and exited several companies in tech and media over the past 15 years. He is also an early stage investor and advisor in various blockchain-based companies.


Leave a Reply

Your email address will not be published. Required fields are marked *





110,000 Investors in Ghana Lost $25.7 Million in Crypto Scams and Hacks

Bitcoin Accumulation is Real as Unspent Transaction Outputs Reach All Time High