Bollinger Bands Founder Identifies Bullish Flag on Bitcoin Chart, Predicts Imminent Market Upswing
The post Bollinger Bands Founder Identifies Bullish Flag on Bitcoin Chart, Predicts Imminent Market Upswing appeared on BitcoinEthereumNews.com.
Bitcoin is currently exhibiting a bullish flag pattern, signaling potential upside as its price consolidates within a regression channel. Bitcoin experienced a turbulent trading week marked by notable price fluctuations and significant market events. After starting the week with a decline from $60,000 to below $58,000, the crypto’s trajectory shifted dramatically when the U.S. Federal Reserve implemented its first interest rate cut in over four years, reducing rates by 0.5%. This move spurred significant volatility, initially unsettling the market but quickly igniting a robust rally. By Friday, Bitcoin had increased over $4,000, briefly touching $64,000 before encountering resistance and stabilizing near $63,000 over the weekend. W pattern on the weekly Chart As the week progressed, key technical indicators suggested potential bullish momentum. Notably, John Bollinger, creator of the Bollinger Bands indicator, identified a promising pattern on the weekly Bitcoin chart. He observed a W pattern forming within a downward-sloping regression channel, which he characterized as a flag pattern—often signaling a potential continuation of the previous trend. Nice little W pattern on the weekly $BTCUSD chart. I drew a regression channel to highlight the flag that is forming. Bullish setup, Awaiting confirmation.#BTC https://t.co/gOvuD5o1ja — John Bollinger (@bbands) September 20, 2024 The flag formation, highlighted by the regression channel, shows Bitcoin’s price oscillating between the upper and lower bounds, indicating consolidation before a possible breakout. This setup points to significant buying pressure at lower levels, particularly when the price touched the lower band and bounced back, indicating strong market support. According to Bollinger, this analysis reflects ongoing consolidation within defined boundaries, awaiting a bullish confirmation if Bitcoin breaks above the upper channel. Halving Cycle Hint at Year-End Surge Further supporting the optimistic outlook, analyst Ali Martinez highlighted similarities between Bitcoin’s current market behavior and past halving cycles. Martinez emphasized Bitcoin’s cyclical nature by…
Filed under: News - @ September 23, 2024 12:28 pm