“Carl from the Moon” observes a Bitcoin bull flag formation on the weekly time frame that has a price target of $40,074.
By definition, a bull flag is a bullish chart pattern depicted by two rallies separated by a brief pullback period. Profit-taking brings the initial rise to a stop, and the price settles into a tight range with slightly lower lows and higher highs.
This demonstrates that there is still support on the market, even though theof some large long positions and traders entering short positions is causing the price to move downward.
As the consolidation progresses, the price may break out of the upper range level and/or reach a new high after the bulls retake control to trigger another rally.
BTC temporarily surpassed $28,000 earlier this week before reversing some of its gains.
, one of Glassnode’s cofounders, highlights BTC’s impressive rise at the start of October, while suggesting that a major decline seems improbable at this stage.
“BTC enjoyed a 6% surge on Sunday, but hitting a roadblock at $28.5K led to a 4.5% dip the following day. Nevertheless, the Risk Signal’s sharp drop below the high-risk threshold suggests that a major decline is improbable at this stage,” the Glassnode cofounder tweeted.
According to Santiment, Bitcoin experienced its largest volume spike on Monday, only hours after breaking beyond the $28,400 barrier for the first time since mid-August.
This article was originally published on U.Today
Source: Cryptocurrency - investing.com
