Bitcoin could be gearing up for another power surge.
After surging significantly on Feb. 8th, bitcoin has mostly been going sideways.
Well, sideways with a slightly downward bias.
On the charts, this appears to be creating a bullish flag pattern.
If we look at a 3 day chart we can see that bitcoin could be setting up for another surge higher based on this pattern, though we need to see prices break about $3,700 for confirmation:
(Source: https://www.coindesk.com/bitcoins-sideways-drift-has-shifted-price-recovery-target-to-3-7k)
A flag pattern is basically where you have a big move up, creating the flag pole, followed by slightly lower trending price action over the following couple of days.
It is confirmed once prices surge above the top of the flag pole, which in this case would be about $3,700.
If we zoom in a bit, things look even more encouraging.
If we look at a 4 hour chart of the same price action, things look even better.
We have the same potential flag pattern, followed by mostly sideways to down price action.
However, we are starting to break the downtrend line of that flag, often known as a falling wedge, to the upside:
(Source: https://www.coindesk.com/bitcoins-sideways-drift-has-shifted-price-recovery-target-to-3-7k)
Often when we break a falling wedge to the upside like we did here, we end up also taking out the top of the flag pole, which would be around $3,700.
If that were to happen here we would be good to go for a move roughly the same length as the flag pole.
Which would take us to about $3,900/$4,000.
My gut says we go for it within the next couple days.
Stay informed my friends.
