Bitcoin can rally to $80,000
While bearish indicators are worrying, Bitcoin's price action also shows the potential for a bullish reversal.
The weekly chart highlights a bullish flag pattern, a continuation pattern that, if confirmed, could propel Bitcoin back towards its previous high of $80,000.
The flag pattern is characterized by a downward sloping channel (flag) that follows a strong upward move (flagpole).
Bitcoin's recent price action fits this description, as the cryptocurrency trades within a tight range following its March 2024 peak.
Bullish flags are resolved when the price breaks above the upper trendline and rises to the height of the flagpole. Applying the same technical rule to the current $BTC price action yields $ 80.000 as the ultimate upside target of the bull flag.
Fundamentally, the potential rate cut by the Federal Reserve in September and a persistent hold sentiment among long-term Bitcoin investors may fuel the bull flag breakout scenario.
