What we are observing is a vertical rise in BTC followed by a visible period of consolidation. Bullish flags like that are typically common in strong uptrends - hence the "pole" part of the flag 'pole'.. No doubt we are observing the continued accumulation of BTC by some large players.
The drop appears to continue to be bought back up by bulls who continue to defend 18.7k - 19k - on a small scale the strong defense almost appears like a "double bottom".
What would invalidate this is if it were to form a pennant, or simply were to break the lowest low.
During a period of consolidation of a bull flag, one is supposed to investigate volume. In periods of consolidation volume should be dropping, and dry up the formation of the flag takes place. If the price was not moving downward off the highest high, we would not in conjunction with the avg volume dropping think much of it, but the price is indeed slowing downward, following the preceding uptrend (flag pole.)
If you are still for some reason not in a BTC position the best way to enter into the position would be to enter at the bottom of the flag, or if you are more conservative off the breakout when price moves above the high of the upper channel trend line. If we are using fibbanci's in conjunction with this we are looking for a pullback ideally off the 0.618 which incidentally is where price recently strong found support. Chart containing this visual is below.
If the price breaks out, one should expect the price to not find resistance till it moves roughly up the equal mass of the initial flag pole. The initial flag pole was 22% in this 4hr chart.
Final comment is that the EMA is clearly indicating a return to a bullish trend with support confirming the appearance of sideways accumulation following the bullish breakout.
Good fortunes to you traders! Please let me know if you trade bull flags or bitcoin differently, or if you think there is a different way to interpret this chart!
And please hit follow so I can share more of my charts with you!
The drop appears to continue to be bought back up by bulls who continue to defend 18.7k - 19k - on a small scale the strong defense almost appears like a "double bottom".
What would invalidate this is if it were to form a pennant, or simply were to break the lowest low.
During a period of consolidation of a bull flag, one is supposed to investigate volume. In periods of consolidation volume should be dropping, and dry up the formation of the flag takes place. If the price was not moving downward off the highest high, we would not in conjunction with the avg volume dropping think much of it, but the price is indeed slowing downward, following the preceding uptrend (flag pole.)
If you are still for some reason not in a BTC position the best way to enter into the position would be to enter at the bottom of the flag, or if you are more conservative off the breakout when price moves above the high of the upper channel trend line. If we are using fibbanci's in conjunction with this we are looking for a pullback ideally off the 0.618 which incidentally is where price recently strong found support. Chart containing this visual is below.
If the price breaks out, one should expect the price to not find resistance till it moves roughly up the equal mass of the initial flag pole. The initial flag pole was 22% in this 4hr chart.
Final comment is that the EMA is clearly indicating a return to a bullish trend with support confirming the appearance of sideways accumulation following the bullish breakout.
Good fortunes to you traders! Please let me know if you trade bull flags or bitcoin differently, or if you think there is a different way to interpret this chart!
And please hit follow so I can share more of my charts with you!
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