Recently, the trend of Bitcoin has been eye-catching. After a wave of rapid rise, the price entered a small consolidation range, forming a rising flag pattern. This pattern is usually a "ready to go" signal, meaning that the market is brewing and may be preparing for the next wave of gains.
What is a rising flag pattern?
Simply put, a rising flag is like a "rest" after a rapid rise. The price of Bitcoin has experienced a strong rise before, and this rise formed a "flagpole". Then, the price starts to fluctuate within a range, like a "sideways consolidation", which is a "flag". Generally speaking, this consolidation stage means that the market is still digesting the previous gains, but it is not necessarily about to turn. Instead, it is likely to be accumulating energy for the next wave of gains.
Watch the highs and lows
There are two key points in this consolidation range, one is the resistance level (high) above, around $89,940, and the other is the support level (low) below, around $85,072.
Upper edge breakthrough: If Bitcoin can break through the high of $89,940, it will be like a shot in the arm for the market, which may bring about a new wave of rise and attract more investors to enter the market.
Lower Edge Support: On the contrary, if the price breaks below the low of $85,072, it may mean that this consolidation range is over and the market may undergo a correction, with the price likely to move lower in the short term.
How to use this form?
If you want to participate in this market trend, consider the following strategies:
Enter when the upper edge breaks: When the price approaches and breaks through $89,940, it may mean that the upward trend will continue. You can consider following the entry, but remember to set a stop loss to prevent the risk of false breakthroughs.
Stop Loss on Lower Edge: If the price falls below $85,072, this could be a signal of decline. At this time, considering stop loss can avoid greater losses and protect the principal.
The current Bitcoin market is oscillating within the flag pattern, giving people a feeling that it is "about to take off", but the direction has not yet been determined. During this period, we can observe patiently and wait until the price is close to the high or low of the flag before deciding to enter the market or stop loss. For bullish investors, the breakthrough of the upper edge of the flag will be an ideal entry signal, while the support of the lower edge also needs special attention.
