Bitcoin Daily Chart: As the Bitcoin Price continues to hold above crucial support, things are beginning to look more Bullish. Covered: A New Hope Resistances Converge Possible Price Targets Closing Thoughts A New Hope If you are starting to feel anxious about the Bitcoin price, you will probably be happy to know that a Bullish […] The post Bullish Pattern Emerges On The Bitcoin Daily Chart appeared first on CryptosRus.

Bullish Pattern Emerges On The Bitcoin Daily Chart

Bitcoin Daily Chart: As the Bitcoin Price continues to hold above crucial support, things are beginning to look more Bullish.

Covered:

  • A New Hope
  • Resistances Converge
  • Possible Price Targets
  • Closing Thoughts

A New Hope

If you are starting to feel anxious about the Bitcoin price, you will probably be happy to know that a Bullish consolidation pattern has formed on the daily chart.  For a trendline to be taken seriously it should have at least three touch points, and the price action of the past few days has cemented a “Falling Wedge” pattern with three touch points along both the top and bottom trendlines.

A “Falling Wedge” Pattern can be described as a descending channel where the price action is constricting into a tighter range.  This type of pattern is statistically more likely to break to the upside, and is considered bullish.

 

Resistances Converge

If you read yesterday’s analysis, you would know that we were tracking potential resistance coming in at the $60,000 USD mark, as that psychologically important round number is sitting in confluence with the 50 Day Simple Moving Average (green line).  The upper trendline of this “Falling Wedge” has also converged around this level, making this point of resistance even more brutal.

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So far, this resistance has continued to hold.  When a daily candle closes above that upper trendline, Bitcoin will have technically broken the downtrend, and a push to new all time highs will become much more likely.

Possible Price Targets

There is more than one way to extrapolate a price target from a “flag” pattern like this.  The more conservative way is to take the widest part of the wedge and place it at the possible breakout point.  Using this method, the target would send us up to around $67,785, just under the current all time high.

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A second, more optimistic way, is to take the length of the “flag pole” leading up to the Falling Wedge.  In this case, the pole began right around $40,000.  Using this method, the target would be at around $86,112.

Closing Thoughts

Just because we are in a Bullish pattern does not mean that the price is going to go straight up.  At the time of writing, volume is looking very low, and without buying pressure, Bitcoin will have a hard time breaking past resistance.  If the price falls, we may see another test of the bottom trendline of this Falling Wedge.  Right now, what I want to see most is for this weekly candle to close above our crucial support at $58,367.

Find yesterday’s analysis here:

Resistance Is Not Futile: Bitcoin Blasts Through Key Price As Uptrend Resumes

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