Bitcoin sideways and slightly upward movement has persisted since early February. Could this be a bottoming pattern, or is this just a standard bear flag that is still to play out to the downside? Bitcoin breaks higher out of continuation pattern Source: TradingView In the very short-term 1-hour time frame it can be observed that the $BTC price has just broken out from a tiny flag pattern, and this having emerged from a bigger falling wedge pattern . One of the main bullish factors is that the price is yet again above the major $69,000 horizontal support after a brief dip below. That said, after making another higher low, will the bulls have what it takes to put in the next higher high? This would entail a $5,000 move to the upside from here. Quite a tall order. The $72,000 horizontal resistance level is the full extent of the measured move out of the triangle, so this is the first barrier to more upside, and quite a critical one at that. $73K and then $74K need to follow, before a new higher high above $76K. One more upside move to top of bear flag? Source: TradingView The daily chart shows the possibility of one more upside move to the top of the bear flag before the descending trendline also becomes a barrier to a full-on rally. If the $BTC price is able to push through both of these considerable resistances, a trend change and an end to the bear market could be a distinct possibility. After the surge out of the small falling wedge a lot of momentum has already been used up, therefore it may take the rest of this week for the price to reach the top of the flag. The Stochastic RSI has its indicator lines crossing back to the upside, while the Relative Strength Index (RSI) has witnessed a breakdown of the indicator line below the ascending channel . This indicator line has since come back to confirm the bottom of the channel, so unless it breaks back inside, this could signal a corrective impulse from here first, perhaps down to the bottom of the bear flag. Bullish factors, but bears still in control Source: TradingView The weekly time frame can probably be seen in a bullish as well as a bearish light. The bullish case is that a bottom could be forming, and that a breakout could be only a week or two away. The main bullish factor has to be the Stochastic RSI , with its indicator lines currently standing proud and tall, and pointing to the upside, having crossed the 20.00 level where price momentum typically kicks in. The RSI also has its indicator poking through the descending trendline, although this will need to be the case at the end of the week. Nevertheless, with the bullish scenario accounted for, it has to be acknowledged that the bears are still in control. The trend is still down, and the $BTC price action is still taking place within a bear flag. Unless there is a sustained breakout of the top of the bear flag, the probability is that the price is forced back down, and that this time it will drop out of the bottom of the flag. If it does so, $40,000 beckons . This would be a good, stiff correction, in line with previous bear markets. Will this Bitcoin cycle be any different? Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
