Bitcoin Price Raises Bull Flag in Preparation for Possible Move Higher

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View Bitcoin has formed a bull flag pattern on the hourly chart in the last 24 hours.

A break above $8,890 would confirm a bull flag breakout and create room for a rally to $9,940.

The ongoing bitcoin price consolidation below $9,000 looks bullish in nature and could end up fueling further gains, according to technical charts.

The path of least resistance remains to the upside with the price staying well above the former resistance-turned-support of $8,390.

Further, the price congestion has taken the shape of a technical pattern called a "Bull flag" - a pause that often refreshes higher.

A break above the upper edge the flag, currently at $8,890, would confirm a flag breakout and accelerate the move toward $10,000.

BTC has created a bull flag pattern following an upside break of a pennant pattern on Sunday.

A flag breakout, if confirmed, would create room for a rally to $9,940.

The stacking order of the 50-hour MA, above the 100-hour MA, above the 200-hour MA is also a classic bull signal.

The bullish MA studies also indicate that a flag breakdown, if confirmed, could end up trapping sellers on the wrong side of the market.

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