Bitcoin’s Bull Flag Breakout Suggests More Upside; Support at $57K
15 Nov, 2021•1 min read•Bitcoin
Bitcoin bounced to $66,000 on Monday, partially erasing the losses from last Wednesday. Technical charts signal an impending boost from a bullish continuation pattern.
“BTC has broken out of the Flag pattern, and buying momentum is expected to continue,” MintingM, a Mumbai-based crypto asset management company, said in its weekly market report. “Bitcoin could break the six-figure mark in Q4.” A bull flag represents consolidation after a notable uptrend. It’s a pause that usually recharges the bulls’ engines for a continued move higher. Friday’s defense of $62,500 and the subsequent recovery have established another higher low on the daily chart and reinforced the flag breakout confirmed last Monday. The 14-day relative strength index (RSI) is biased bullish with an above 50 print. The immediate resistance is seen at $68,990, the record high reached on Wednesday following the release of a hotter-than-expected U.S. inflation data. The move was quickly undone with prices falling to $62,500 on renewed fears of faster rate hikes by the Federal Reserve. Eqonex, a Singapore-based crypto exchange, foresees a rally to $88,000. Eqonex mentioned $58,500 as the level to defend for bulls in its weekend newsletter, while MintingM cited $58,000 as key support.