## Looking North? Bitcoin Price Dip Forms Bull Flag Pattern

Bitcoin’s (BTC) minor pullback from two-week highs could end up fueling a breakout above the key hurdle of $4,140. The world’s largest cryptocurrency by market value jumped to$4,090 at 17:15 UTC on Sunday – the highest level since Dec. 24 – validating the short-term bullish reversal confirmed on Dec. 20.

Even so, the positive momentum has weakened slightly in the last 36 hours. As of writing, BTC is changing hands at $3,995 on Bitstamp, having clocked a low of$3,934 earlier today.

The 3 percent correction from two-week highs, however, has carved out a bull flag on the technical charts. Put simply, the pattern often represents a pause in a rally and can accelerate the preceding bullish move.

So, it seems safe to say that the price pullback has pushed up the odds of an inverse head-and-shoulders breakout above $4,140. ### 4-hour chart BTC has created a bull flag pattern – a bullish continuation setup – on the 4-hour chart. A 4-hour close above the upper edge of the flag, currently at$4,005, would confirm a bull breakout. That would signal a revival of the rally from the Jan. 6 low of $3,753 and would open the doors to$4,340 (target as per the measured move method).

Essentially, the flag breakout could end up yielding an inverse head-and-shoulders breakout above the neckline of $4,140. More importantly, higher lows (marked by red arrows) at$3,566 (Dec. 27 low), $3,629 (Jan. 1 low) and$3,753 (Jan. 6 low) indicate that the bulls are in control. Therefore, crossing the flag resistance should not be a tough task.

### Daily chart

As seen above, BTC is taking the support of the 5- and 10-day moving averages (MAs), validating the short-term bullish setup indicated by these upward sloping averages.

The 14-day relative strength index is holding in bullish territory above 50.00 and prices seem to have found acceptance above the 50-day MA hurdle.

The path of least resistance, therefore, is to the higher side.

### View

• A bull flag breakout, if confirmed, could yield a break above the inverse head-and-shoulders neckline level of $4,140. • A UTC close above$4,140 would confirm an inverse head-and-shoulders bullish reversal (transition from the bearish-to-bullish market) and open up upside towards the psychological hurdle of $5,000. • The bears may feel emboldened if BTC violates the bullish-higher low pattern with a move below$3,566 (Dec. 27 low).
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A bull flag breakout, if confirmed, could yield a break above the inverse head-and-shoulders neckline level of $4,140. Thanks for sharing up support reading learning thanks @小黄兔 #4 Thanks for sharing Thanks for your support @小黄兔 #5 up Thanks for your support~ @小黄兔 #6 support Thanks for your support @小黄兔 #7 reading Thanks for your support @小黄兔 #8 learning THX @小黄兔 #9 thanks THX @六月合欢 #10 @小黄兔 #4Thanks for sharing Thanks for your support thanks @六月合欢 #10 @小黄兔 #4Thanks for sharing Thanks for your support thanks~ @六月合欢 #14 @小黄兔 #8learning THX thanks support Goodnight @小黄兔 #16 @六月合欢 #10@小黄兔 #4Thanks for sharing Thanks for your support thanks THX @小黄兔 #18 @六月合欢 #14@小黄兔 #8learning THX thanks THX @小黄兔 #19 support Thanks~ @小黄兔 #20 Goodnight Goodnight A bull flag breakout, if confirmed, could yield a break above the inverse head-and-shoulders neckline level of$4,140.

A UTC close above $4,140 would confirm an inverse head-and-shoulders bullish reversal (transition from the bearish-to-bullish market) and open up upside towards the psychological hurdle of$5,000.

The bears may feel emboldened if BTC violates the bullish-higher low pattern with a move below $3,566 (Dec. 27 low). You should login to reply You will reward to {{ username }} Available Balance: {{balance}} ≈$ {{usdtAmount.toFixed(2)}} (The reward commission rate is 10.0%)

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