The Bitcoin weekly chart shows an intriguing trend that, if confirmed, might lead to a surge above $40,000, according to cryptocurrency expert “Carl from the Moon” on X.
On the weekly time frame, “Carl from the Moon” notices a bull flag formation for bitcoin with a target price of $40,074.
https://x.com/TheMoonCarl/status/1709831274410479829?s=20
A bull flag is, by definition, a bullish chart pattern that shows two rallies separated by a brief downturn. The early gain is stopped by profit-taking, and the price moves into a narrow range with somewhat higher lows and higher highs.
This shows that even if the price is moving lower due to traders closing out some sizable long positions and opening short ones, there is still support in the market.
After the bulls regain control to start another rally, the price may break out of the upper range level as the consolidation continues and/or hit a new high.
Bitcoin price action
At the time of writing, BTC has increased by 0.29% to $27,683 over the previous day. In today’s trade, Bitcoin (BTC) reached a high of $27,896 as the cryptocurrency markets stabilised following Monday’s sharp increase.
Earlier this week, BTC briefly crossed the $28,000 mark before erasing some of its gains.
One of Glassnode’s cofounders, Negentropic, cites BTC’s strong growth at the beginning of October while arguing that a significant decrease at this point appears unlikely.
“BTC had a 6% increase on Sunday, but a hurdle at $28.5K caused a 4.5% decline on Monday. However, the Risk Signal’s abrupt dip below the high-risk level indicates that a significant reduction is unlikely at this time, the Glassnode cofounder tweeted.
Santiment claims that on Monday, just hours after breaking above the $28,400 mark for the first time since mid-August, Bitcoin had its biggest increase in volume.
