Market

Flag Pattern Setup on Bitcoin with a 36K Target for COINBASE:BTCUSD by Ceddy86

Trend Analysis
The main view of this trade idea is on the 15-minute chart. Bitcoin ( btc ) appears to be in a flag pattern setup in the respective timeframe, as the cryptocurrency recently broke above 34K. Based on this setup, btc is expected to continue to rally towards 36K , 5.2% higher from current price levels at the time of publishing. A close below the flag’s support will signal a failure of the pattern setup.

Technical Indicators
Btc is currently above its short (25-SMA) and medium (75-SMA) and fractal moving averages during this weekend trade. The RSI is approaching overbought territory, however, assets such as these can remain overbought during several trading sessions. The KST recently had a positive crossover, aiding to the bullish nature of the chart pattern and overall price movements.

Recommendation

The recommendation will be to go long at market. BTC is expected to rally towards 36K , 5.2% higher from current levels. With a stop loss around 33.5K, which is solidly below the lower trend line of the flag pattern setup, the trade will have a risk-reward ratio of 2.42.

Disclaimer

The views expressed are mine and do not represent the views of my employers and business partners. Persons acting on these recommendations are doing so at their own risk. These recommendations are not a solicitation to buy or to sell but are for purely discussion purposes. At the time publishing, I have a position in btc .

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