Bitcoin Flag Pattern Aims $11000, But are the Bull Exhausted? Analysts Weigh-in
June 20th, 2019
Bitcoin [BTC] has continued to rise above $9000 as the market sentiments towards the emerging asset is growing strong with each day. The Whitepaper release of Facebook’s crypto venture, Libra, is acting a positive market indicator.
Although Libra is backed a basket of currencies, it still works on the concept of token holding value. Hence, it breaks the rhetoric that ‘blockchain, not cryptocurrencies, is the future of the internet.’ One seems to be coming along with the other in most real-world use cases.
Furthermore, technical analysis from two analysts reveals a break above $10000 is almost imminent. Bitcoin is forming a bull flag with targets at $11000. Interestingly, it was identified by two independent analysts on Twitter. The analysts go by pen-names B.Biddles and MoonOver Lord who identified the bull flag pattern.
Bull-flag signals are found in strong uptrends; the consolidation in Bitcoin after the break $8000 is where the pattern has formed.
However, Tone Vays whose analysis is mostly based on sequential and moving averages suggested that there is a slight change that Bitcoin [BTC] could break bearish. Moreover, he also predicted the rise above $9300, which happened today. However, the sequential now could look for another pullback.
Furthermore, the trading volume has also decreased in the past couple of days, which might suggest exhaustion of the bull action. According to another analysis from Sawcruteez using Welles Wilder’s Average Directional Index (ADX), the bulls might be exhausted.
One of the most important keys to beating the market is distinguishing between a strong / exhausted trend. Welles Wilder’s Average Directional Index (ADX) is one of the best ways to distinguish between the two. If ADX > 50 then exhausted. If 25 < ADX < 50 then strong. $
The current ADX on the weekly is pointing at 67. Hence, if Bitcoin breaks bearish, it might validate the above analysis.
The price of Bitcoin [BTC] at 4: 40 hours UTC on 20th June 2019 is $9300.