Bitcoin (BTC): Time to Take Profits or Await the Next Surge?

Bitcoin (BTC) hit a top of $94,600 on Wednesday before being rejected. Could this be a good time to take profits and run? Or is this just a standard corrective phase before the next leg higher? 

Markets turn calmer

Markets have potentially calmed down somewhat since the violent ups and downs of the last several days. There is now talk of China being open to trade talks with the US, after President Trump said that he would drastically scale down the tariffs against the number one global trade competitor.

Things are calming down, and so with the market possibly having priced in an ongoing trade war escalation, it is perhaps now the time for investors to start unwinding those short positions and be able to have a more positive outlook again.

A W pattern for the S&P 500?

Source: TradingView

The S&P 500 gained 1.67% on Wednesday, and should the markets continue positively on Thursday and Friday, the W pattern in the daily chart above could come to fruition. If the S&P 500 can get back above $5,800 the trend breakdown could be on the way to being reversed back to the upside.

Only a small correction for $BTC?

Source: TradingView

In the short-term time frame for $BTC it can be seen that the price has as yet only corrected a small amount. The upward trend out of the pennant has still not been broken, although that is not as important as holding the $91,300 level and keeping it as good support.

The 4-hour and the 8-hour Stochastic RSIs are coming down to their respective bottoms, and once there, they could turn back around and help to buoy the price higher again. 

Is $BTC price in another bull flag?

Source: TradingView

While it could be seen as an attempt to squeeze the price action into something that it isn’t, it is starting to look like the $BTC price may have formed another bull flag over the last few months. If this is indeed the case, this would be an incredibly bullish occurrence.

If this is a bull flag, and it does break to the upside, the measured move would take the price up to around $115,000, depending from which point one draws the flag pole. The bull market may not be over yet.

Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.