Bitcoin gathers itself ready for the next big push

Bitcoin gathers itself ready for the next big push

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Bitcoin is traversing sideways, consolidating and gaining strength ready for the big push towards the very important $48,000 level. With the Spot Bitcoin ETF likely to be announced early in the new year, expect high volatility.

Bitcoin is doing what it was created to do, and this is to provide monetary freedom, a store of value, a trustless system that needs no middleman, and a highly secure means of sending value across the globe.

Bitcoin bull flag?

On Friday bitcoin is ranging sideways at around $43,600, very near to its yearly top of $44,700. That $BTC might be expected to take out this top and make new highs is a very possible occurrence.

Source: Trading View

$BTC is currently within a bull flag, and it might be anticipated that the price comes back to make another touch of the bottom of the flag before returning to break through the top.

The flag isn’t a typical bull flag, in that it doesn’t tilt downwards. Therefore the price could be in a sideways channel and could break out upwards or downwards, but given that the price came into the channel in an upward trend, the expectation would be that the price breaks to the upside.

Bitcoin ascending triangle

Source: Trading View

Another way to look at the price action is to draw it within an ascending triangle. This is also a bullish continuation pattern, and the likelihood is that the breakout would be from the top of the triangle. For traders it would be good to see that volume comes in with the breakout. Stop losses would normally be placed just below the breakout area.

For the ascending triangle pattern, and also for the trend line that bitcoin has respected for more than two months, the moment of truth is about to arrive. There are a possible five more days within the triangle, but it would be expected that $BTC break out before it reaches the end. 

If the breakout is to the upside a continuation of the trend might be anticipated, but if the break is to the downside and becomes confirmed, a deeper correction could be on the cards. Trade safely.

Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.

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