Avalanche (AVAX) strengthened its case for a potential upside run towards $160 in the coming sessions equally it bankrupt out of a classic bullish pattern earlier this calendar week.

Dubbed "bull flag," the pattern emerges when the price consolidates lower/sideways between two parallel trendlines (flag) subsequently undergoing a strong upside motion (flagpole). Afterward, in theory, the price breaks out of the channel range to proceed the uptrend and tends to rise by equally much as the flagpole's acme.

AVAX went through a similar price trajectory across the last 30 days, containing a roughly 100% flagpole rally to nearly $150, followed by over a 50% flag correction to $72, and a breakout move above the flag's upper trendline (around $85) on Dec. 15.

AVAX/USD daily cost chart featuring Bull Flag blueprint. Source: TradingView

AVAX cost continued rallying after breaking out of its bull flag range, reaching most $120 on Dec. 17 simply eyeing a further leg upwards towards its bullish continuation target near $160. The level appeared subsequently calculation the top of AVAX's flagpole, which is around $75, to the electric current breakout betoken near $85.

A week full of bullish AVAX events

The recent buying menses in the Barrage market picked up momentum due to a flurry of positive catalysts this week.

AVAX jumped about 10.50% on December. 17 equally Barrage added the native version of USDC, a dollar-pegged stablecoin issued by Circle, on its blockchain.

Additionally, a report penned past Depository financial institution of America analysts published on December. 10, called Avalanche a viable culling to the leading smart contract platform Ethereum. That coincided with AVAX gaining some other 16%.

AVAX/USD daily toll chart featuring key events in the week ending December. 19. Source: TradingView

On December. 23, AVAX rallied to its two-week loftier subsequently BitGo, a crypto custodian with over $64 billion worth of assets nether management, announced that information technology would support the token.

Nonetheless, a minor selloff at the local toll tiptop pushed AVAX lower. AVAX then recovered on Dec. 17 every bit Avalanche appear that information technology would collaborate with Web 3.0 accelerator DeFi Alliance to launch a gaming accelerator program.

All the events mentioned above pointed towards the Avalanche ecosystem's growth. For instance, with USDC, the project promised to provide a feasible alternative to Ethereum'southward very expensive Tether (USDT) stablecoin transactions.

Moreover, by gaining BitGo every bit AVAX'southward institutional custodian, Avalanche appears to exist prepping to cater to accredited investors. Mike Belshe, CEO of BitGo, explained:

"Institutional custody is non the same as retail custody, and BitGo wallets and custody were designed from the ground up to encounter the needs of institutional investors, and BitGo is the only contained qualified custodian focused on edifice the right market place structure and facilities to enable institutions to enter the digital nugget space with confidence."

AVAX cost risks

One of the remaining downside risks around AVAX concerns the crypto market performance, on the whole.

In detail, AVAX rallied in a calendar week that witnessed the entire cryptocurrency market capitalization lose more than $114 billion, with leading crypto assets Bitcoin (BTC) and Ether (ETH) plunging over 7% and 5% calendar week-to-date. Concerns over the Federal Reserve's tapering plans catalyzed the market place selloff.

Therefore, it appears that traders looked at AVAX as their short-term hedge against the crypto market drop, largely driven past a string of positive news.

AVAX/BTC weekly price chart. Source: TradingView

Moreover, the AVAX/BTC pair was upwardly well-nigh 40% week-to-engagement at effectually 0.00245 BTC at the fourth dimension of writing, with the pair's relative forcefulness index (RSI) inbound overbought territory. That could prompt AVAX to weaken against BTC in the coming sessions.

Related: 'Monster balderdash move' means whales could secure the next Bitcoin price surge

A similar effect may be possible in AVAX/USD's example as its weekly RSI treads virtually overbought levels.

AVAX/USD weekly cost nautical chart. Source: TradingView

Withal, the pair is likely to retain its bullish bias as long as it holds above its xx-week exponential moving average (xx-week EMA) equally support. Equally shown in the chart above, the greenish wave has been capping AVAX's downside attempts since August 2022.

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