Bitcoin (BTCUSD): Bullish Flag at Rising Trend Line–Time to Buy?

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Written By: Angeline Feliciano

Jan 30, 2020, 09:00 GMT 09:00

BTCUSD - Bitcoin

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.

Written By: Angeline Feliciano

Angeline Feliciano has been trading Forex for over ten years. She has invaluable experience working in FX education companies like BabyPips.com and Learn to Trade as a trader, currency analyst, trading coach, and presenter. Aside from these roles, she has also created intensive educational content on fundamental analysis which is heavily sought after by retail traders. She has taught hundreds of people how to trade the FX market in the Philippines and in Australia. When she is not trading, you can find her in the gym lifting weights.