Bitcoin’s Bull Flag Breakout Suggests More Upside; Support at $57K

The cryptocurrency could break the six-figure mark in Q4, one firm said.

Nov 15, 2021 at 11:46 a.m. UTC
Updated Nov 15, 2021 at 3:50 p.m. UTC

Bitcoin’s price bounced to $66,000 on Monday, partially erasing the losses from last Wednesday. Technical charts signal an impending boost from a bullish continuation pattern.

  • “BTC has broken out of the Flag pattern, and buying momentum is expected to continue,” MintingM, a Mumbai-based crypto asset management company, said in its weekly market report. “Bitcoin could break the six-figure mark in Q4.”
  • A bull flag represents consolidation after a notable uptrend. It’s a pause that usually recharges the bulls’ engines for a continued move higher.
  • Friday’s defense of $62,500 and the subsequent recovery have established another higher low on the daily chart and reinforced the flag breakout confirmed last Monday. The 14-day relative strength index (RSI) is biased bullish with an above 50 print.
  • The immediate resistance is seen at $68,990, the record high reached on Wednesday following the release of a hotter-than-expected U.S. inflation data. The move was quickly undone with prices falling to $62,500 on renewed fears of faster rate hikes by the Federal Reserve.
  • Eqonex, a Singapore-based crypto exchange, foresees a rally to $88,000.
  • Eqonex mentioned $58,500 as the level to defend for bulls in its weekend newsletter, while MintingM cited $58,000 as key support.

Bitcoin's bull flag breakout (MintingM, TradingView)

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Omkar Godbole is the senior reporter on CoinDesk's Markets team.