Bitcoin may be primed for a move back over the year to date highs
With the month of October closing, we also closed the book on the monthly candle stick.
Ever since we ran up in early 2019 and started pulling back, it has looked like bitcoin has been in a bull flag formation on the monthly chart.
Check it out:
With the October close being what it was, it looks as though bitcoin may have finally broken out of that monthly flag channel to the upside.
What does that mean?
Usually, and I use that word loosely as these things don't always work out, when price breaks out of a bull flag like this one to the upside, it often goes up in a similar amount to the original run up, also known as the flag pole.
In this case, the original run up started around $4k and ran up to almost $14k. That would give us a measured move of about $10k or so.
We can then take that measured move and apply it to the lows of this recent pullback, which was around $7k or so.
Which means, the measured move from this bull flag breakout would take us up near $17k or so.
Awesome, but we do have a couple hurdles first
The first hurdle is going to be really leaving that down sloping channel/flag behind.
Right now we appear to be sitting just outside of it, but we need to hold outside of it and start trending up soon.
Then, we will need to break that resistance around $14k.
Often when these types of setups fail, they rally up to the top of the flag pole and then get rejected from there.
In our case that would be around the $14k level.
These are things to be watching over the coming months as we wind the year down and inch our way closer to the next halving.
Stay informed my friends.
-Doc