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A Bullish Flag On BTC’s Chart Could Signal Potential Upside

Published 05/27/2023, 08:31 AM
Updated 05/27/2023, 09:00 AM
© Reuters.  A Bullish Flag On BTC’s Chart Could Signal Potential Upside
BTC/USD
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BTC/USD
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ETH/USD
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  • At press time, BTC was trading hands at $26,725.02 after it experienced a price increase of 0.91%.
  • The 9 EMA line was looking to cross above the 20 EMA line on BTC’s 4-hour chart.
  • Should this happen, BTC’s price could flip the resistance level at $26,850 into support.

The crypto market leader, Bitcoin (BTC) earned itself a spot on CoinMarketCap’s trending list after a 0.91% price increase over the past 24 hours. As a result, BTC was worth about $26,725.02 at press time.

Despite BTC’s positive performance throughout the past day, it was not enough to flip the crypto’s weekly or monthly performances back into the green. BTC was down 0.56% over the past seven days, and experienced losses of more than 7% over the past month.

BTC performance was also not enough for it to strengthen against its biggest competitor, Ethereum (ETH). At press time, BTC was down against the altcoin leader by about 0.02%.

4-hour chart for BTC/USD (Source: TradingView)

A bullish technical flag was on the verge of triggering on BTC’s 4-hour chart, as the 9 EMA line was looking to cross above the 20 EMA line. Should this cross happen, the leading crypto’s price could finally flip the resistance level at $26,850 into support. This will then clear a path for it to rise to the next major resistance at $27,450.

This bullish thesis will be validated if BTC’s price is able to close above the $26,850 within the next 24 hours. Should it fail to achieve this, BTC’s price is at risk of dropping back down to the next crucial support at $26,350.

One technical indicator that investors and traders will need to take note of the RSI indicator on the 4-hour chart. At press time, the RSI line was sloped negatively towards oversold territory and was looking to cross bearishly below the RSI SMA line.

Disclaimer: The views and opinions, as well as all the information shared in this price analysis, are published in good faith. Readers must do their own research and due diligence. Any action taken by the reader is strictly at their own risk. Coin Edition and its affiliates will not be held liable for any direct or indirect damage or loss.

The post A Bullish Flag On BTC’s Chart Could Signal Potential Upside appeared first on Coin Edition.

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