BTCUSDT - BULLISH PENNANT, CORRECTION. BREAKOUT
Updated
Today I'm presenting for your consideration a weekly chart of BITCOIN that over the span of 5 MONTHS has been forming a Bullish Pennant Pattern. The Pattern however is not yet fully formed and though the price has attempted to retest on several occasions now at it's All Time High, the Price has fallen back each time as it appears to consolidate. What we need to see yet is a strong pullback down to approximately $65,049, likely to happen by the first week of July that will give us a bottom and subsequent rise up to $70,392 at which point the Pennant pattern will be complete and I will expect a breakout in the last week of July. The next move after that would be to $73,777. to equal the previous High. The Flag Pole of the Pennant is $31519 so from the Breakout level of $70,392 that will give us a potential run into new territory that could last several month up to $101,911. Also one of my primary indicators that I like to use for Price Reversals is the Money Flow Index. As you can see with the MFI it has formed a Very Strong Negative Divergence in the opposite direction of the rise and subsequent neutral trend of the current price making me Strongly believe the Price will retrace as much as 5.8% from 69k. In total the Pennant will take another 7 weeks to complete before the breakout. Now because I don't trade in BTC I will take positions first of all in BITI and then switch over to BITO for the Bullish Reversal and Breakout. The expected gain over the span of the next 5-6 months is a minimum of 40% - 50% playing this strategy.
Note
Conversely you could also play the Crypto-mining companies and start by Short Selling CLSK and MARA, and then buy them on the reversal.Note
Looking at the smaller 2 hour timeframe shows more clearly the breakdown that I was expecting to take place and as long as the candles trend below the 7 day EMA the price will remain suppressed. The one factor that may see the price bounce back up to
67K is that the MFI is trending higher even though the price is now neutral however using the Fibonacci Retracement Indicator, the likely hood is that BTC could retrace further back down to the 3.618 level or approx. $63,050.00Note
After Hours Trading is crazy with BTC to Tear it Down and Build it up again so quickly. Overall the turnaround can make your head spin. Unfortunately my account doesn't allow for trading AH so that is #1 on my To Do List is to find a Canadian Platform that allows AH and PM Trading. This recent 2 Hour chart says it all except for the fact that there may yet be a retest of the low before it takes off again because the next RUN I fully expect BTC to break the ATH and then some. Personally I like to take advantage of the Bit Coin Miners as they swing up and down usually in Higher percentages that the actual moves of BTC. That also goes for BITI and BITO and MSTR. All valid plays.
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