Here’s What Bitcoin’s Chart Analysis Says

Here’s What Bitcoin’s Chart Analysis Says

Bitcoin (BTC) has been consolidating for the past few weeks after a steep rally. This consolidation period is taking place within a rising flag pattern, which is a bullish technical pattern. A rising flag pattern is formed when the price of an asset consolidates within a range after a strong uptrend. The range is typically defined by two parallel lines, with the upper line acting as resistance and the lower line acting as support. The current rising flag pattern on BTC's chart began to form on April. The price of BTC has been consolidating within the range ever since, with a number of failed attempts to break out of the range. The MACD histogram is another technical indicator that is used to gauge momentum. The MACD histogram is currently pointing down, which indicates that the bears are in control of the momentum. However, there have been times in the past when rising flag patterns have played out bullishly despite bearish momentum on the MACD. The 50-week, 100-week and 200-week simple moving averages are also currently lining up below the price. This is a bullish sign, as it indicates that the long-term trend is still up. If the rising flag pattern completes, it could lead to a new uptrend in BTC. The price of BTC could break out of the range and rally to new highs.