View Bitcoin has backed off 4 percent from three-week highs seen on Friday, but looks to have formed a bull flag - a bullish continuation pattern - on the 4-hour chart.
A move above $3,630 would confirm a flag breakout and open the doors to $4,000.
Acceptance below the lower edge of the flag, currently at $3,546 would weaken the short-term bullish case.
Bitcoin's overnight pullback from three-week highs hit on Friday doesn't mean the rally is over.
The prospects of a stronger short-term rally toward $4,000 look strong, as the price pullback has carved out a bull flag on the technical charts.
A break above the upper edge of the flag, currently at $3,630, would confirm a breakout and could be followed by a rally to $4,000.
Put simply, the bulls appear to be in control and could soon force a flag breakout.
It's worth noting if the bulls don't act soon, then the flag's horizontal length would exceed the pole's height in the next few hours, deeming the bullish continuation setup invalid.
The bulls need progress soon to stop BTC finding acceptance below flag support at $3,546.
A bull flag breakout, if confirmed, could yield a convincing move above the 50-candle MA - a level, which has acted as stiff resistance in the last 72 hours.
Bitcoin Price Pattern Hints at Short-Term Rally to $4K
Published on Feb 12, 2019
by Coindesk | Published on Coinage
Mentioned in this article
The five most important dates for Bitcoin until 2020
From the resolution of the New York Attorney General's injunction against Bitfinex and Tether to the final decisions of the long-awaited cryptocurrency ETFs, here's a list of some of the most relevant dates in the crypto industry to keep an eye on.
Crypto and Security Token Exchange INX to Raise $130 Million in Landmark IPO
INX Limited, a crypto exchange startup, plans to raise up to $129.5 million through an IPO, in the first security token sale registered with the U.S. Securities and Exchange Commission.
Judge Rejects Multimillion Dollar Asset Plea in Crypto Fraud Case
A Supreme Court judge in British Columbia, Canada, has denied a motion to set aside an asset freeze, which was requested by the defendants in a multimillion dollar cryptocurrency fraud case.
Israeli Regulator to Fast Track 2,000 Fintech License Applications
Israel's Fintech regulator is rearranging its licensing regime to encourage competition in the field.