Bitcoin made a new all-time high recently, and another attempt at the $70,000 is possible. An irregular flat pattern may give it a push higher.
Cryptocurrencies have grown in value and popularity over the years, with names like Bitcoin or Ethereum leading the race. As more and more people embrace cryptos, they prove themselves as a medium of exchange too.
Take Bitcoin, for instance. There are more than 230k daily transactions in Bitcoin, as more consumers switch to spending their cryptocurrencies.
Bitcoin had a terrific start of the trading year – it traded at $65,000 in April, triggering a rally in other cryptocurrencies as well. Since then, many things have affected Bitcoin’s performance – China clamping down on miners, Elon Musk expressing environmental concerns, etc.
The result was a drop of more than 50% in price by the end of the summer. Yet, since then, Bitcoin rallied and even made a new all-time high recently.
Is the bullish run over or is another correction due? Ironically, from a technical perspective, Bitcoin looks constructive from higher, not lower levels.
Bullish irregular flat pattern signals more upside
The technical picture looks bullish now that the price of Bitcoin has reached a new all-time high. Currently, an irregular flat pattern indicates more strength, providing the price does drop below $50,000.
The Thanksgiving trading week is usually a slow one for traditional financial markets, but the cryptocurrency market is open during holidays and weekends. As such, we should not exclude volatility during holiday periods.
An irregular flat pattern is a bullish formation should it forms during a rising trend. According to the Elliott Waves Theory, it is either a simple correction or part of a complex one. When it is a simple correction, it typically forms as the second wave in an impulsive move, with the extended wave (a.k.a. the largest) to follow). When it is part of a complex correction, it typically forms at the end of it if trending conditions exist.
A move above $70,000 is bullish for Bitcoin because it suggests that either a simple or complex correction ended, and the trend resumes. Therefore, instead of buying here, Bitcoin bulls would be better off waiting for a daily close above the all-time highs before going long.