Benzinga took a Twitter poll on Saturday asking if people think Bitcoin (CRYPTO: BTC) would hit $ 50,000 this weekend. Sunday afternoon, 71% of those questioned chose “yes”. Although Bitcoin may need a few days for further consolidation as the apex cryptocurrency appears to be gearing up for another race north.
See also: Is Bitcoin a Good Investment in 2021?
The Bitcoin chart: Bitcoin has settled into a bull flag pattern with the pole created between August 19 and 20 and the flag between Saturday and Sunday. If Bitcoin breaks bullish from formation, the implied measured move could see Bitcoin trading around 12.5% above the $ 54,130 level. The measured movement of a bullish flag pattern is measured by measuring the length of the pole and adding the same percentage or dollar value to the lowest price in the flag pattern.
Consolidation in flag formation helped Bitcoin cool its Relative Strength Index (RSI) which approached the 70% level on Friday. When the RSI of a crypto or stock breaks above the 70% level, it is a sell signal for technical traders. When Bitcoin hit an RSI of over 70% on July 30, August 7, August 9, and August 13, sellers came in and ditched the crypto in consolidation.
The low trading volume on Bitcoin also indicates that the slightly lower prices are a consolidation. Bears should look for high volume on a lower movement to be sure the rally is over.
Bitcoin is trading above the eight-day and 21-day exponential moving averages (EMA) with the eight-day EMA trending above the 21-day, both of which are bullish indicators. The crypto is also trading above the 200-day simple moving average, indicating that overall sentiment is bullish.
The bulls want to see a big bullish volume coming in and breaking Bitcoin in a bullish way of the flag. The crypto has higher resistance at $ 48,817 and $ 51,191.
The bears want to see a big bearish volume come in and drop the crypto out of the flag pattern and below the eight-day EMA support. Bitcoin has support below at $ 44,850 and $ 42,223.
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© 2021 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
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