This is a daily technical analysis of the Coindesk analyst and technician of the approved market Omkar Godbole.
Bitcoin
The price table displays a well -trained “bull flag”, suggesting a potential escape for new heights for life in accordance with certain traders for a price rally at $ 140,000.
BTC reached a record summit of almost $ 111,900, against about $ 74,700 in the six and a half weeks finished on May 22, and has since exchanged a slightly downward range, forming the Taurus flag, according to the tradingView mapping platform. The flag is identified by trend lines connecting the peaks affected on June 22 and 9 and the stockings reached on June 5 and 22. Meanwhile, the post is represented by the initial push.
A move above $ 109,000 is necessary to confirm the escape of the bull, which would open the door to a rally at $ 146,000. The level is calculated by adding the length of the post – the initial overvoltage – at the break point, using a method, technical analysts call a measured movement.
A Taurus flag model represents a countertenance and low volume consolidation in a narrow beach, preceded by a strong increase. Consolidation tends to be smaller in amplitude and duration than the previous rally, helping to relieve the short -term surbouillit conditions and recharge the bull engines for the next leg.
“The flag training occurs over a short period – generally from a few days to a few weeks,” wrote Charles D. Kirkpatrick in his book, Technical Analysis: The Complete Resource for Financial Market Technians. “The volume generally decreases throughout the formation of the flag.”
“”[However]It is important to be prudent to ensure that full training has occurred and to wait for the break, “noted Kirkpatrick.
Flags are models of continuation, and consolidation should therefore be resolved in the direction of the previous rise.
However, failures can occur in two ways. First, prices can dive out of the flag, marking a downward overthrow. Second, a bullish break can fail, which calls for continuous monitoring of price action.
That said, the failure rates are low, according to Kirkpatrick.
“Because these models have low failure rates, few withdrawals or returns, short periods and steep trends preceding and according to their occurrences, they are very good trading models,” noted Kirkpatrick.
