To technically analyze Bitcoin (BTC) over a 4-hour time frame after a third flag has formed, it is essential to look at several key aspects:
Flag Formation: Flags are continuation patterns that appear after a significant price movement. A third flag in a sequence could indicate a strong uptrend if previous ones have been confirmed by upward breakouts. Volume: Volume should increase when the flag breaks. Increasing volume confirms the validity of the breakout and the continuation of the trend. Supports and Resistances: It is important to identify key support and resistance levels. If BTC breaks above the immediate resistance after the flag formation, it could open the way to new highs. Technical Indicators: Use indicators such as the RSI (Relative Strength Index), moving averages (MA), and MACD (Moving Average Convergence Divergence) to gauge the strength and direction of the trend.
5. Technical Analysis in 4 hours
Flag Formation: If a third flag is formed, it suggests a continuation of the uptrend. The first two flags must have been followed by significant price increases to validate this figure. Volume: Check if the volume is increasing when the flag resistance breaks. High volume usually confirms the validity of the breakout. Supports and Resistances: Identify key levels around $70,000 and $72,000. If these levels are crossed with significant volume, the probability of hitting $73,000 increases. Indicators:
RSI: An RSI above 70 could indicate an overbought situation, but in a strong bull market this may persist for longer.
