Bitcoin Breaks Free from Flag Formation: Buy Signal in Play

In today’s technical part, we will revisit Bitcoin, which we have mentioned from time to time, especially a few weeks ago when Bitcoin started making significant moves. With physical gold heading upward, its digital counterpart, often referred to as “cyber gold” or “crypto gold,” is also showing some action. Since March, Bitcoin has been trading within a flag formation, more specifically a channel-down pattern, marked by blue parallel lines. However, in the previous week, Bitcoin broke out of this flag to the upside, reaching its highest levels since the end of July.

The breakout above the upper blue line signals a buy, indicating the potential for further gains. As long as Bitcoin stays above this key level, the sentiment remains positive and bullish. There is, of course, the risk that the price might fall back into the pattern below the upper blue line. Should that happen, it would signify a false bullish breakout, which would then generate a strong sell signal. For now, though, as long as Bitcoin holds above the upper boundary, the outlook remains optimistic.

Source: https://www.axiory.com/analytics/technical-analysis/bitcoin-breaks-free-from-flag-formation-buy-signal