Bitcoin is currently exhibiting a bullish flag pattern, signaling potential upside as its price consolidates within a regression channel.
Bitcoin experienced a turbulent trading week marked by notable price fluctuations and significant market events. After starting the week with a decline from $60,000 to below $58,000, the crypto’s trajectory shifted dramatically when the U.S. Federal Reserve implemented its first interest rate cut in over four years, reducing rates by 0.5%.
This move spurred significant volatility, initially unsettling the market but quickly igniting a robust rally. By Friday, Bitcoin had increased over $4,000, briefly touching $64,000 before encountering resistance and stabilizing near $63,000 over the weekend.
W pattern on the weekly Chart
As the week progressed, key technical indicators suggested potential bullish momentum. Notably, John Bollinger, creator of the Bollinger Bands indicator, identified a promising pattern on the weekly Bitcoin chart. He observed a W pattern forming within a downward-sloping regression channel, which he characterized as a flag pattern—often signaling a potential continuation of the previous trend.
Nice little W pattern on the weekly $BTCUSD chart. I drew a regression channel to highlight the flag that is forming. Bullish setup, Awaiting confirmation.#BTC https://t.co/gOvuD5o1ja
— John Bollinger (@bbands) September 20, 2024
The flag formation, highlighted by the regression channel, shows Bitcoin’s price oscillating between the upper and lower bounds, indicating consolidation before a possible breakout.
This setup points to significant buying pressure at lower levels, particularly when the price touched the lower band and bounced back, indicating strong market support.
According to Bollinger, this analysis reflects ongoing consolidation within defined boundaries, awaiting a bullish confirmation if Bitcoin breaks above the upper channel.
Halving Cycle Hint at Year-End Surge
Further supporting the optimistic outlook, analyst Ali Martinez highlighted similarities between Bitcoin’s current market behavior and past halving cycles. Martinez emphasized Bitcoin’s cyclical nature by comparing 2024 trends with those of 2016 and 2020. In 2016, Bitcoin maintained steady gains throughout the year, culminating in a 61% surge in Q4.
However, the 2020 halving cycle showed a more aggressive trajectory, with returns peaking at 171% by the year’s end. Martinez’s analysis suggests Bitcoin may mirror these historical patterns, with a potential uptrend emerging near the year’s final quarter.
Crypto’s Growing Visibility
Adding to Bitcoin’s evolving landscape, Vice President Kamala Harris made headlines by publicly endorsing cryptocurrency for the first time. Speaking at a fundraiser on Wall Street, Harris pledged her support for digital assets and artificial intelligence as part of her economic agenda. This marked her first public acknowledgment of the sector since launching her presidential campaign.
Disclaimer: This content is informational and should not be considered financial advice. The views expressed in this article may include the author’s personal opinions and do not reflect The Crypto Basic’s opinion. Readers are encouraged to do thorough research before making any investment decisions. The Crypto Basic is not responsible for any financial losses.
