Classical chart trader Aksel Kibar has spotted a rare price formation for Bitcoin. The crypto trader highlights two chart patterns for the lead crypto asset and their potential price targets.
The first is a bull flag, which is often spotted in an uptrend, where the price is likely to continue upward.
In the case of a bull flag, a resistance break might lead to upside gains roughly the length of the pole. In this case, Kibar highlights the key price barrier to watch out for as he says he is waiting for a breakout confirmation above $31,200.
On the other hand, if the support level for the bull flag is broken, the pattern becomes invalidated, and continuation is unlikely. Based on the chart posted by the trader, the $29,500 level was highlighted as critical support.
Bitcoin recently resolved a head and shoulders pattern, which appears on a chart as three peaks, with the middle peak being slightly higher than the two sides, forming a head and two shoulders on the left and right.
This contributed to its rise past $31,000 in the past week. Per the chart posted by Kibar, Bitcoin is yet to reach the price target of the head and shoulders pattern, which is $34,000.
Bitcoin might experience volatile move
The crypto market has gotten a little boring, with Bitcoin (BTC) settling into the tightest price range in weeks.
The #Bitcoin 14-day Price Range remains extremely narrow, residing at a value of 4.6%, with only 1.9% (2167/113790) of trading hours recording a lower value.— glassnode (@glassnode) July 11, 2023
With Bitcoin rarely quiet for such sustained periods, the probability of a volatile move in either direction is enhanced. pic.twitter.com/c9gpceZBVD
According to Glassnode, the Bitcoin 14-day price range remains extremely narrow, residing at a value of 4.6%, with only 1.9% of trading hours recording a lower value.
With Bitcoin rarely being quiet for such sustained periods, the probability of a volatile move in either direction is enhanced, Glassnode further stated.
At the time of writing, Bitcoin was just up 1.02% in the last 24 hours to $30,697.