Bitcoin Monthly Close Keeps Bull Flag Formation Intact, Target Over $14,000

Bitcoin price has had a stellar year, even despite the recent trend turning bearish after a descending triangle pattern broke down.

After three consecutive red monthly candles in a row, October closed green and kept a potential bull flag formation on monthly price charts intact, giving bulls hope that the crypto asset’s 2019 rally isn’t totally finished.

Bitcoin’s Bullish 2019 Remembered

During the first quarter of the year, Bitcoin was trapped inside a tight trading range, where major players began buying the fear of retail crypto investors and accumulating the asset at the lowest possible prices.

Starting in the second quarter, the first-ever crypto asset rocketed up from that trading range, and went on a parabolic rally that didn’t stop until Bitcoin met former bear market resistance at $14,000 where it was rejected.

The powerful ascent to above $10,000 revived interest in the crypto market, especially around Bitcoin, and formed a towering flag pole to what appears to be a bull flag chart pattern.

Related Reading | Make It Or Break It Time For Bitcoin, Rally In Jeopardy If Support Is Lost

Crypto traders often perform technical analysis to better predict price movements and trend changes, and a bull flag is among the most common bullish chart patterns. Bull flags form when bearish investors are overwhelmed by buying, causing the asset to break through resistance, causing a massive surge. The flag itself forms from a string of FOMO buying and a cascade of stop losses being hit.

Bitcoin’s powerful parabolic rally formed a massive bull flag pole, that’s nearly $10,000 long. But after three consecutive red monthly candles in a row – which could be a three black crows reversal – the bull flag formation was put at risk.

However, last night’s daily close was also…

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