Bitcoin (BTC) is continuing to dip towards the $106,000 horizontal support level. Will a bounce take place from there, or could this dip go deeper? Is a major rally awaiting once this dip is complete? $BTC bulls gathering for big push to the upside Bitcoin (BTC) has already touched the top of its bull flag and the price has been rejected. All perfectly serene in the grand scheme of things, given that overbought signals were flashing as the $BTC price had become overstretched. However, with short-term momentum indicators coming down fast to reset, it may not be long before the $BTC bulls get their chance to send the price back up and this time out of the top of the bull flag. Shallow correction may turn around at $106,000 Source: TradingView The short-term 4-hour chart shows how the $BTC price is rolling over after touching the top of the flag. At a level of support now at $106,500, the price could even start reversing back up from here. However, this would be quite a shallow correction, only barely reaching the 0.236 Fibonacci retracement level. It would be perfectly reasonable for the bears to bring the price down further, to the $106,000, or even the $104,400 horizontal support level, but with the 4 and 8-hour Stochastic RSI indicators already at the bottom, and the 12-hour nearly there, the $106,000 support level looks to be favourite for the coming bounce. Bull flag breakout to $120,000/$130,000? Source: TradingView The weekly time frame reveals the three main continuation patterns over the last year or so. The previous two patterns, the bull flag and the falling wedge, experienced a lot of consolidation before finally breaking out explosively to the upside. The latest bull flag is smaller, and could be expected to break out a lot quicker. As already mentioned, this current dip down to the horizontal support band could be the last one before the next skyward move up to $120,000 to $130,000. Very importantly, the Stochastic RSI indicators on the weekly will have to turn back up and give the signal of a return to upside price momentum. Look for this cross up to take place at the end of this week - all being well. Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
