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BTC analysis – The bull flag is intact. How to identify the end of the correction?

2 min read

BTC increased only slightly after the disruption of MA21 and the trend has not changed yet. The price probably ran into resistance. Correction thus, it is not definitively terminated and the structure of the bull flag is still relevant. What do we need to reverse the trend and what kind of movement to expect at Bitcoin in the coming days?

BTC is located in a growing leg within the bull flag. Its resistance is around $ 46,100. There is even a local control point. So there is a possibility in the game that BTC will go slightly sideway and respect resistance, and then a short-term correction leg will be created.

BTC / USD 4H.  Source: TradingView
BTC / USD 4H. Source: TradingView

BTC is still in the correction structure

The nearest support is located in a zone around $ 41,000. Last time, the award respected this support area. However, with the next correction leg, it will be essential to monitor the position of the local minimum. The minimum must be set higher than the previous one. Subsequently, we will know that volatility eased.

Once a higher minimum is created, we will monitor how the price behaves when in contact with the resistance and the last maximum. Only when the resistance of the flag and the last maximum is broken will a signal be given that the correction structure has been definitively terminated. Additional support is in the $ 38,000 zone. This identification of the 123 bottom formation pattern can help us correctly identify stopping the downward trend and subsequently breaking through the structure.

All content in this article is for informational purposes only and in no way serves as investment advice. Investing in cryptocurrencies, commodities and stocks is very risky and can lead to capital losses.

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