Chart of the Day - Friday, September 20, 2024

🏆 Today's Chart of the Day was shared by John Bollinger (@bbands). 
 

• Bitcoin has been in a falling channel since the breakout failed in March. However, that falling channel is beginning to look like one giant Bull Flag within a long-term uptrend. 
   
• John points out that Bitcoin has formed a W Bottom within this bull flag. John popularized this bullish reversal pattern, which incorporates his famous Bollinger Bands. It will be confirmed on a weekly close above the middle band (around $63k). 
   
• The pattern requires: 
  1.) A close below the lower band 
  2.) A bounce to the middle band
  3.) A lower low that does not close outside the lower band. 
   

Takeaway: Bitcoin has formed a bullish reversal pattern within a downtrend, and the downtrend looks like a bullish continuation pattern within a longer-term uptrend.