This is a daily technical analysis of the Coindesk analyst and rented market technician Omkar Godbole.
Bitcoin
The price chart shows a well -formed “bull flag”, which suggests a possible break for new life maximums consisting of the expectations of some merchants of a price price at $ 140,000 and more.
BTC increased to a maximum record of almost $ 111,900 from around $ 74,700 in the course of six and a half weeks that ended on May 22, and since then has negotiated in a slightly descending range, forming the bull flag, according to the platform of the graphics platform. The flag is identified by tendency lines that connect the maximums on May 22 and June 9 and the minimums reached on June 5 and June 22. Meanwhile, the post is represented by the initial increase.
A movement is needed above $ 109,000 to confirm the breakdown of the bulls, which would open the door for a demonstration to $ 146,000. The level is calculated by adding the length of the pole, the initial increase, to the rupture point, using a method that technical analysts call a measured movement.
A bull flag pattern represents the consolidation of low volume against trend within a narrow range, preceded by a strong increase. Consolidation tends to be less in magnitude and duration than the previous rally, which helps relieve short -term overload conditions and recharge the bull engines for the next leg.
“Flag formations occur for a short period, usually from a few days a few weeks,” Charles D. Kirkpatrick wrote in his book, Technical Analysis: The full resource for financial market technicians. “The volume usually decreases throughout the formation of the flag.”
“[However]It is important to be cautious to ensure that a complete training has occurred and wait for the break, “Kirkpatrick said.
The flags are continuation patterns, so consolidation is expected to be resolved in the direction of the previous bullish trend.
Even so, failures can occur in two ways. First, prices can get out of the flag, marking a bassist investment. Secondly, a bullish breakdown may fail, which requires continuous monitoring of the price action.
That said, the fault rates are low, according to Kirkpatrick.
“Because these patterns have low failure rates, few setbacks or setbacks, short periods of time and pronounced trends that precede and after their occurrences, are very good commercial patterns,” said Kirkpatrick.
