Bitcoin Bull Flag Targets $88,888
Bitcoin Daily Bull Flag
A Bull Flag is a pattern that can be seen on charts when an asset has a near-vertical advance in price followed by a pullback/consolidation period that trends near a 45-degree angle. These are fairly common patterns, especially on low timeframes. Traders can play inside of larger trends by spotting Bull Flags and Bull Pennants on charts with a resolution of 15 minutes.
The idea behind the pattern is relatively simple – there is a big move followed by a bit of a cool down period. Inside of the cooldown period, you are trading Lower Lows and Lower Highs but you are maintaining a bit of a channel as the price declines. There are times when the bottom of the Flag ends up being a perfect pullback for the Pole – meaning that price came down and retested a specific level that added to the confluence area for support.
The previous Bull Flag in this trend Missed the Target by $500
When we are talking $500 on an asset that was trading at $66K then we are just splitting hairs. The previous Bull Flag was a bit sloppier and the pole was far less vertical than our current Bull Flag. The visual comparison should be relatively easy to spot.
The depth of the pullback is also very different. The first Bull Flag had a pullback halfway between the 50% and the 61.8%. A majority of the consolidation then happened on the 50% Fib level.
The current pullback wicked down to the 38.2 Fib and was instantly eaten up with Buy Orders, preventing any further downside at the time of trading.
Generally speaking – the more shallow the Pullback – the stronger the trend.
8 PM ET Closes the Month of October
Fresh Capital – Fresh Trades – Fresh Options – All of these things can contribute to a very Bullish Month of November. All of that will be needed in order to push Bitcoin into new highs and breakthrough psychological barriers such as $75K and $80K. A Bull Flag does not put a time limit on reaching a Target – to get a sense for that, we can use an ABCD Pattern. The simplest potential timeframe would put Bitcoin at $88,888 in the same duration it took Bitcoin to go from $39,573 – $67,016. That puts us at November 26th, 2021 – which is Black Friday or the Day After Thanksgiving!
What's Hot in the AltCoin World?
The METAverse tokens have been hot ever since the FB name change announcement. We have been covering these for a while now. MANA and SAND are pulling back after their explosive moves last night and we are watching for some consolidation and then a fresh breakout to give confidence in the next potential leg. WIN, ANKR, STORJ, and ZRX are all on the watchlist today but these do have much less trading Volume than the majors – so it pays to manage your risk properly.
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