Crypto analyst “Carl from the Moon” on X spots an intriguing pattern on the Bitcoin weekly chart that might trigger a rise to $40,000 if validated.
“Carl from the Moon” observes a Bitcoin bull flag formation on the weekly time frame that has a price target of $40,074.
CHART: #Bitcoin Bull Flag formation on the weekly time frame. pic.twitter.com/HENnGPYkMr
— Carl From The Moon (@TheMoonCarl) October 5, 2023
By definition, a bull flag is a bullish chart pattern depicted by two rallies separated by a brief pullback period. Profit-taking brings the initial rise to a stop, and the price settles into a tight range with slightly lower lows and higher highs.
This demonstrates that there is still support on the market, even though the unwinding of some large long positions and traders entering short positions is causing the price to move downward.
As the consolidation progresses, the price may break out of the upper range level and/or reach a new high after the bulls retake control to trigger another rally.
Bitcoin price action
BTC was up 0.29% in the last 24 hours to $27,683 at the time of writing. Bitcoin (BTC) rose to highs of $27,896 in today’s trading as crypto markets settled after Monday’s rapid gain.
BTC temporarily surpassed $28,000 earlier this week before reversing some of its gains.
Negentropic, one of Glassnode’s cofounders, highlights BTC’s impressive rise at the start of October, while suggesting that a major decline seems improbable at this stage.
“BTC enjoyed a 6% surge on Sunday, but hitting a roadblock at $28.5K led to a 4.5% dip the following day. Nevertheless, the Risk Signal’s sharp drop below the high-risk threshold suggests that a major decline is improbable at this stage,” the Glassnode cofounder tweeted.
According to Santiment, Bitcoin experienced its largest volume spike on Monday, only hours after breaking beyond the $28,400 barrier for the first time since mid-August.
