- Bitcoin price develops a powerful bullish continuation pattern.
- Ethereum price struggles to stay above $4,000.
- XRP struggles against the $1.00 value area.
Bitcoin price action forms a bull flag on its Point and Figure chart, indicating a return to the $60,000 value area. Ethereum price faces consistent rejection against key Ichimoku resistance levels, preventing any close above the $4,000 value area. XRP price continues to find difficulty holding above two key Ichimoku levels.
Bitcoin price poised to rise 25%
Bitcoin price action has entered into some consolidation on its $500/3-box reversal Point and Figure chart. As a result, a bull flag has now developed with a setup that could trigger a significant breakout move above a triple-top.
A hypothetical long entry for Bitcoin price with a buy stop order at $52,500, a stop loss at $50,500, and a profit target at $62,500. This trade idea represents a 5:1 reward for the risk. In addition, a two to three-box trailing stop would help protect any implied profit post entry.
BTC/USD $500/3-box Reversal Point and Figure Chart
The long idea is invalid if the Bitcoin price drops below $48,500. A drop to $49,500 would create a Bear Trap pattern, while a drop to $49,000 would create a Bearish Fakeout pattern. Those patterns would increase the positive expectancy post-entry at $52,500.
