- Summary:
- Bitcoin (BTCUSD) has been consolidating for the past few trading sessions. It has formed a bullish flag at its recent highs hinting at a potential rally.
Bitcoin retraced some of its gains in yesterday’s trading to its previous highs. BTCUSD went as low as $9,185.00 where it peaked on January 19. This price also offers a confluence of support. It aligns with the 38.2% Fib level when you draw the Fibonacci retracement tool from the low of January 28 to the high of January 29. It also coincides with the rising trend line from connecting the lows of January 26 and 27.
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A closer look at the recent price action on BTCUSD also shows what looks like a bullish flag pattern. This is characterized by the consolidation on the cryptocurrency following a drastic upside rally. In forex trading, a bullish close above bitcoin’s January 29 highs at $9.439.83 could trigger a run up to $10,000.00 where BTCUSD topped in October 2019.
However, a bearish close below $9,185.00 would invalidate the bullish flag and the trend line. It could signal that sellers may still push bitcoin to its January 25 lows around $8,280.00.