September 21, 2023

A bullish flag on the Bitcoin chart may signal growth

Cryptocurrency market leader Bitcoin (BTC) has been trending on CoinMarketCap after rising 0.91% to $26,725 on May 27.

Despite positive dynamics of BTC, this wasnot enough to return the weekly or monthly performance of the cryptocurrency to the green zone. Over the past seven days, BTC has fallen by 0.56% and has lost over 7% in the last month.

Bitcoin also failed to strengthen against its main competitor Ethereum (ETH), against which it fell by about 0.02%.

A bullish flag on the Bitcoin chart may signal growth

4-hour chart for BTC/USD (Source: TradingView)

On the 4-hour BTC chart, a bullish technical flagwas on the verge of triggering as the 9 EMA line sought to cross the 20 EMA line. If this crossover occurs, the price of the leading cryptocurrency could turn the $26,850 resistance level into support.

Such a rise will clear the way for growth towards the next major resistance at $27,450. If this does not happen, the price of BTC is at risk of falling again to the next important support at $26,350.

One technical indicator that investors andtraders will have to take note, is the RSI indicator on the 4-hour chart. On the evening of May 27, the RSI line had a negative slope towards the oversold zone and tended to cross below the RSI SMA line.

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