Comprehensive Chart Breakdown – BTC/USD (1-Hour Timeframe)
Pattern: Bullish Pennant | Instrument: Bitcoin / US Dollar (BTC/USD) | Exchange: Bitstamp | Timeframe: 1H
Technical View as of May 2, 2025
🔍 1. Market Context:
Prior to the pennant formation, Bitcoin exhibited a strong bullish impulse leg from the sub-$94,000 zone up to nearly $97,800, forming the flagpole of the pattern. This upward movement reflects strong market interest and institutional buying pressure, often observed during high volatility phases in crypto markets.
📐 2. Pattern Formation: Bullish Pennant
After the rally, price action entered a consolidation phase, forming a Bullish Pennant, a continuation pattern characterized by:
Converging support and resistance trendlines.
Declining volume (not visible on this chart, but expected in this phase).
Short-term indecision in the market as bulls take profit and bears test control.
This pennant reflects healthy consolidation, not reversal — a sign the market is preparing for another upward leg once breakout occurs.
🔵 3. Key Technical Zones:
Support Zone (around $96,400):
Multiple touchpoints validating it as a demand zone, where buyers re-entered the market to defend price dips.
Resistance Zone (around $97,800):
Sellers consistently capped price at this zone until the breakout attempt.
Breakout Confirmation:
The price has breached the upper resistance line of the pennant, confirming bullish continuation. This signals renewed buyer strength.
📈 4. Trade Setup:
Entry Point:
Around the breakout of the pennant at approximately $97,650–$97,800.
Target (TP):
Based on flagpole height projection from breakout point:
Flagpole size ≈ $3,800
Target: Breakout level ($97,800) + Pole height ≈ $99,825
Stop Loss (SL):
Set just below the pennant support, around $96,311, allowing for breathing room while minimizing downside risk.
🎯 5. Price Projection & Roadmap:
Expect short-term pullback/retest towards $97,200–$97,400 (previous resistance turned support).
If bullish momentum holds, price should rally towards the measured target of $99,825.
Breakout may accelerate due to breakout traders, short-covering, and new buyers entering after confirmation.
🧭 6. Risk Management & R:R Ratio:
Risk-to-Reward Ratio (R:R):
Risk: ~$1,300
Reward: ~$2,200
R:R ≈ 1:1.7, acceptable for continuation trades.
Always confirm breakout strength with volume and momentum indicators (like RSI or MACD) for added confidence.
✅ Conclusion:
This BTC/USD chart provides a textbook example of a Bullish Pennant, following a strong impulsive move, and offers a high-probability long setup upon breakout. The price structure supports a continuation to the upside, with clearly defined risk parameters and logical target projection.
Pattern: Bullish Pennant | Instrument: Bitcoin / US Dollar (BTC/USD) | Exchange: Bitstamp | Timeframe: 1H
Technical View as of May 2, 2025
🔍 1. Market Context:
Prior to the pennant formation, Bitcoin exhibited a strong bullish impulse leg from the sub-$94,000 zone up to nearly $97,800, forming the flagpole of the pattern. This upward movement reflects strong market interest and institutional buying pressure, often observed during high volatility phases in crypto markets.
📐 2. Pattern Formation: Bullish Pennant
After the rally, price action entered a consolidation phase, forming a Bullish Pennant, a continuation pattern characterized by:
Converging support and resistance trendlines.
Declining volume (not visible on this chart, but expected in this phase).
Short-term indecision in the market as bulls take profit and bears test control.
This pennant reflects healthy consolidation, not reversal — a sign the market is preparing for another upward leg once breakout occurs.
🔵 3. Key Technical Zones:
Support Zone (around $96,400):
Multiple touchpoints validating it as a demand zone, where buyers re-entered the market to defend price dips.
Resistance Zone (around $97,800):
Sellers consistently capped price at this zone until the breakout attempt.
Breakout Confirmation:
The price has breached the upper resistance line of the pennant, confirming bullish continuation. This signals renewed buyer strength.
📈 4. Trade Setup:
Entry Point:
Around the breakout of the pennant at approximately $97,650–$97,800.
Target (TP):
Based on flagpole height projection from breakout point:
Flagpole size ≈ $3,800
Target: Breakout level ($97,800) + Pole height ≈ $99,825
Stop Loss (SL):
Set just below the pennant support, around $96,311, allowing for breathing room while minimizing downside risk.
🎯 5. Price Projection & Roadmap:
Expect short-term pullback/retest towards $97,200–$97,400 (previous resistance turned support).
If bullish momentum holds, price should rally towards the measured target of $99,825.
Breakout may accelerate due to breakout traders, short-covering, and new buyers entering after confirmation.
🧭 6. Risk Management & R:R Ratio:
Risk-to-Reward Ratio (R:R):
Risk: ~$1,300
Reward: ~$2,200
R:R ≈ 1:1.7, acceptable for continuation trades.
Always confirm breakout strength with volume and momentum indicators (like RSI or MACD) for added confidence.
✅ Conclusion:
This BTC/USD chart provides a textbook example of a Bullish Pennant, following a strong impulsive move, and offers a high-probability long setup upon breakout. The price structure supports a continuation to the upside, with clearly defined risk parameters and logical target projection.
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The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Related publications
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.