Bitcoin Breakout Could Send it to $13,000… or $18,000
Again, Bitcoin (BTC) volatility has dropped through the floor, with the cryptocurrency finding itself trading within $10,500 to $11,000 for over a day now. While some suggest that the lack of positive price action is a sign of an impending secondary drop, during which some analysts expect Bitcoin to fall under $9,000 and maybe even $8,000, BTC may just be preparing to break out.
Per a chart from Nunya Bizniz, Bitcoin’s four-hour candles are currently trading in a bull flag, which is marked by a downward sloping channel after a strong uptrend.
Should Bitcoin break out from the top line of the current bull flag, which is currently situated at $12,300, Bizniz suggests that a 25% gain is likely — implying an appreciation to $15,000 if such a move higher occurs in the near future. The 25% gain figure was presumably derived from studies.
$15,000 is just a low-end estimate. As Bizniz goes on to point out, the bull flag that Bitcoin is currently situated in could be defined as a “High & Tight” bull flag, a special iteration of the pattern that normally marks a short-term pit stop in an uptrend. Because, according to Bizniz’s definition of a High & Tight, they occur after a 90% rise, which is just what BTC experienced when it rallied from $7,500 to $14,000.
Breakouts from this form of a bull flag result in an average 70% gain, implying a rally to $18,000 and beyond.
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