Bitcoin’s price action over the past couple of months has formed a bull flag pattern on the macro chart.
The Reserve Risk indicator is about to exit the ideal green zone. The indicator is used to gauge the sentiment of long-term holders of an asset’s price.
When sentiment is high and the price of an asset is low, there is an attractive risk/reward to enter a position.
This is also the case with BTC, as it is also showing signs of being in an ideal accumulation zone.Â
Similar signals can be seen with the Net Unrealized Profit/Loss (NUPL) indicator. The indicator is currently in the Conviction zone suggesting a potential bull run. Historically, BTC has seen an uptick when the indicator has been in this zone, suggesting conviction in a potential bull run.
The recent recovery from the sideways action has resulted in the formation of a bull flag pattern on BTC.
Based on the measured move target of the pattern, BTC is expected to rally by more than 42%. Should the rally play out, BTC could potentially hit a new high of $95,000.
