Will Bitcoin’s Daily Flag be Enough to Spark the Next Rally to $13,900?

Will Bitcoin’s Daily Flag be Enough to Spark the Next Rally to $13,900?
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Bitcoin has maintained a strong daily uptrend after the recent breakout above $10,000. The bulls were not able to hold $10K but they remain strong with trading volume in their favor. The daily EMAs have crossed bullish and they will act as support if the bears are able to take down the $9,000 level.

The 12-period EMA is currently at $8,749 but the bulls might be able to hold $9,000 as the bears are lacking volume. The 4-hour chart is currently in a slight downtrend and the bulls are struggling to maintain BTC above the 26-period EMA. This doesn’t necessarily mean the bears will gain strength on the daily chart. The lowest 4-hour support is at $8,855.

The weekly chart has clearly changed as the bulls are looking to set a higher low compared to $7,300 and then break above the recent high of $10,370 to confirm a weekly uptrend.

Recent volume has been great for the bulls, last week BTC saw the highest trading volume since July 2019. The bears were able to break below the 12-period EMA, however, this was expected as there is really no strong support nearby.

Will Bitcoin’s Daily Flag be Enough to Spark the Next Rally to $13,900?
BTCUSD Chart By TradingView

Its monthly chart is now closer to confirm a higher low at $7,300. The ultimate confirmation is a shift in the weekly trend. The bulls could very easily just break above $13,970 without having to set a lower high.

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Bitcoin’s upcoming halving could have a big impact on the BTC price. Most experts and analysts believe the May 2020 halving is already impacting Bitcoin as major investors are starting to accumulate it. Bitcoin is generally very volatile and it is really hard to predict whether specific news will affect the price or not, however, historically, Bitcoin halvings have always sent BTC to the moon.

Bakkt, the Bitcoin Futures exchange has also seen a huge increase in trading volume over the last week. This happened right after its announcement of a new regulated options contract.

Will Bitcoin break above $10,000 convincingly or will it struggle to maintain $9,000? 


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