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Crypto analyst Carl Runefelt, who goes by the name Carl from the Moon on Twitter, has highlighted the potential of Bitcoin climbing to the $32,000 mark next. The analyst spotted a bullish "bull flag" pattern on the Bitcoin chart and highlighted the breakout target as $32,000.
CHART: #Bitcoin Bull Flag. pic.twitter.com/IDWFdqGcbY
— Carl From The Moon (@TheMoonCarl) April 13, 2023
A bull flag is a continuation chart pattern that is made up of two rallies with a brief consolidation in between.
On Tuesday, Bitcoin touched $30K for the first time since June 2022, disappointing bears who were expecting a price drop. Bitcoin is up 80% since the start of the year. At the time of writing, Bitcoin was marginally up 0.30% in the last 24 hours to $30,221.
Analysts believe Bitcoin might continue pushing its trend higher, citing technical factors and historical precedents.
Technically, as long as Bitcoin stays above $28,600, it might consolidate on its next move up, targeting the $32,400 to $33,000 mark.
Halving — another positive catalyst
Historical precedents suggest that Bitcoin typically performs well in the run-up to its "halving" event.
Bitcoin is about a year away from this much-publicized event. In April or May 2024, Bitcoin is anticipated to undergo its "halving," though the exact date is still unknown. The Bitcoin halving, which happens every four years, slashes rewards for mining new Bitcoin by 50%. The goal is to gradually decrease the supply of Bitcoin.
Some say this might be the catalyst for a long-term increase in Bitcoin's price.
In the short term, investors will be watching closely for fresh clues about the Fed's monetary policy in today's FOMC Minutes and PPI inflation data, as well as Friday's sales and consumer sentiment data.