Bitcoin has been in a consolidation for around two months
Most recently, the news that BlackRock would like to launch a Bitcoin ETF caused a stir. They would not have given the price a decisive breakout. From a technical point of view, however, there are some indications that this should take place soon.
Since the annual high of USD 31,035, the Bitcoin price has been in a so-called flag formation. He repeatedly tested both the upper and the lower limit of the trend channel. In addition, Bitcoin is currently trading between the 50 and 200-day line at USD 27,059 and USD 23,927 respectively. The cryptocurrency is thus virtually caught between important supports and resistances. Typically, such a situation is resolved by an impulsive movement in one direction.
In the bearish scenario, see the price fall below the USD 24,000 and the GD50 and the lower flag border around USD 23,650. In this case, Bitcoin still has correction potential up to the USD 21,000 level before the overall uptrend resumes. This would only have broken with a fall below the March low at USD 19,569.
In the bullish scenario, the course breaks out above the upper flag limit at around $26,800 and the GD200, ushering in the next upward wave. If Bitcoin manages to break out of the yearly high of $31,035, the rally should gain momentum and focus on $40,000.
Investors should wait for a break out of the flag formation. An entry does not seem obvious for the time being, but “Der Aktionär” is convinced of rising prices in the medium and long term.
Picture Copyright: alfexe
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