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Crypto Daily - Bitcoin (BTC) has broken out of its bull flag and is currently consolidating above $109,000. Is the all-time high next? How high could the king of the cryptocurrencies go?
Bitcoin (BTC) has broken out, has come back to test the breakout, and is now consolidating before the next piece of price action. Could it dip back inside the bull flag? No particular price move can be discarded, and although it makes sense for this upside move to continue, the bulls may run out of steam.
$BTC breakout and confirmation
Source: TradingView
The 4-hour chart reveals the $BTC price breakout and the dip back down to confirm it. However, given that most of the shorter term Stochastic RSI momentum indicators are at or near the top of an overbought condition, it may well be that the price bounces along the top of the bull flag trendline for a while, or as mentioned above, dips back into the flag.
All this said, this is a bull flag breakout and it would be more likely for the price to continue upward. At some point, the momentum indicators will need to reset, but this can come in the form of some sideways and downward movement which may not affect the price too much.
The next targets for this current move are the higher high at $110,600, and then the all-time high just short of $112,000. Getting above the latter and making a new high should be the final confirmation signal that Bitcoin is heading to the next stage of its upward journey.
Bullish daily engulfing candle
Source: TradingView
The daily chart is looking positive. Yesterday’s daily candle engulfed the previous one by quite some margin, and now a candle has opened well above the 50-day moving average (blue line). At the bottom of the chart, the RSI indicator is still angled upward, having bounced from the yellow moving average line and the 50.00 level.
Current bull flag breakout has big potential upside
Source: TradingView
The weekly chart above shows the whole of the bull market so far. It can be seen that the price is just emerging from the current bull flag. Although this flag is a lot smaller in scale than the previous falling wedge or the long bull flag that went sideways for much of 2024, the length of the flag pole could translate into a measured move up to $137,000.
At the bottom of the chart, the Stochastic RSI is in a bullish condition. Obviously, this does not confirm until the end of the week, but as it stands, the blue fast line is shaping to cross back above the orange slow line. This can signal the upside price momentum needed by the bulls for this next big move.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.