Last week the bitcoin rate feel as fickle as the weather. Sometimes there is a nice sun, to then come baking from heaven. Despite these volatile peaks and troughs, the exchange rate remains around a stable average of 10,300 euros. Sooner or later this will change. It is therefore high time for a brand-new bitcoin price analysis.
Continuation pattern of last week
In the analysis of last Friday We already discussed the graph below, in which each candle represents 1 hour. The bitcoin course had to break out at the time by a symmetrical triangle, a continuation pattern. And as always, it can go two ways, up or down. You probably see it already: unfortunately the course ended up in the bearish scenario, it broke out of that triangle. In recent days, the prize eventually found support in the 10,000-euro zone (shown in the figure in green).
Bitcoin rate short term: will there be a bull flag?
What does this mean for the value of bitcoin in the near future? To find an answer to that question, we first have to zoom out to the larger picture. The candles in the graph below are therefore set at 4 o’clock. We see that the bitcoin rate is still inside the canal which we also reported about a week ago. That channel can form a possible bull flag.
For those who no longer know exactly what a bull flag means: a bull flag consists of two elements. 1, The flagpole. You recognize this when the price of bitcoin goes up fast in a relatively short time and is followed by 2, the flag. This is shown in the light green zone in the image below.
Since the last few days, the value of bitcoin has been at the top of that zone. Is the course breaking out here? Then the rule of thumb applies that the possible price increase is as large as the flagpole. As the flagpole in this case represents a price difference of more than 5000 euros, an increase of a few thousand euros is also possible.
Bitcoin course long term: again a symmetrical triangle
If we zoom out even further and look at the patterns on a larger scale, we come to the conclusion that the bitcoin course is also trapped in a symmetrical triangle. In the graph the candles are on 1 day. As always, we outline two scenarios for the future.
A breakthrough of the price by the symmetrical triangle means that the price is likely to be resisted in the 11,600 euro zone. The two peaks of recent months and the first trough in which the price fell after it reached the “all-time high” characterize that zone. If the price breaks through here too, then it might be worthwhile to keep an eye on the previously discussed bull flag.
Don’t know the price of bitcoin by breaking the triangle upwards? Then it probably drops back to the support zone of between 8,100 and 8,500 euros. Here the course has experienced more support or resistance in the past two years.
Exciting times, therefore, for bitcoin. Do you want to immediately follow which scenario is reflected? Then check the live bitcoin rate.