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
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