Bitcoin is showing signs of a potential rise, according to recent technical charts and data from CryptoQuant. The charts reveal that Bitcoin is forming a bullish flag pattern. This pattern often suggests that a price increase could be on the way in the next few months.
#Bitcoin forming an ascending flag pattern
— CryptoQuant.com (@cryptoquant_com) August 8, 2024
“Examining the on-chain NetFlow chart shows the increasing pressure to buy Bitcoin. This is a confirmation of Bitcoin's technical pattern.” – By @CryptoOnchain
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Onchain Data Shows Strong BTC Buying Trend
A bullish flag pattern is a technical analysis that is used by traders to forecast future price action. It occurs when there is an upward price trend that is succeeded by a consolidation in which price drops slightly or stagnates. This pattern resembles a flag that is planted on a pole. It frequently carries on rising when the price emerges from this range-bound phase. A range-bound market is one in which prices fluctuate between a certain high and low price.
Besides the technical chart patterns, CryptoQuant’s Onchain NetFlow chart reveals that the buying pressure for Bitcoin is rising. This chart represents the movement of Bitcoins. If more Bitcoin is being bought and taken off exchanges, it suggests that investors are expecting their Bitcoin to go up in value. This buying pressure is in line with the bullish flag pattern observed on the technical charts.
Bitcoin Indicators Suggest Significant Price Increase in Coming Months
Similarly, there are signs that Bitcoin price might rise in the coming months based on both the technical indicators and Onchain analysis. These are the figures that traders and investors are closely monitoring, as they may indicate that it is time to accumulate Bitcoin before its price goes up.
Lastly, the existence of bullish flag pattern plus the increased buying pressure seen in the Onchain NetFlow chart analyzed by CryptoQuant imply that Bitcoin may be preparing for another powerful price move.