🔥 Bitcoin Formed A Pennant: Consolidation Ahead?
Updated
Yesterday I made a post about the short term movement of Bitcoin. I foresaw a deeper drop than the one we have seen yesterday, it appears that the previously mentioned 34k support is stronger than thought initially. Please take a look below:
With the strong bounce from the 34k support, a pennant pattern has emerged. If bullish pressure continues, the price will follow this pattern in the near term. Main areas of interest are 40k, 34k and 31k.
Classically speaking, a pennant is a continuation pattern. This means that a pennant pattern in the middle of a trend is seen as a short-term consolidation before continueing the trend. In Bitcoin's case, this would mean that we will bounce around inside the pattern for a couple more days, only to break-out on the lower side of the pattern to continue the downward bearish trend.
For the mid- and long-term, I'm still bullish on Bitcoin. Seeing this pattern, I think we'll see a period of consolidation, followed up by a bearish break-out, which will in turn act as a catalyst for the price to reverse after the initial sell-off. The key area to hold is the 31k-30k support area. This one can't fall, else we might fall even further towards potentially 25k and below.
Happy trading!
With the strong bounce from the 34k support, a pennant pattern has emerged. If bullish pressure continues, the price will follow this pattern in the near term. Main areas of interest are 40k, 34k and 31k.
Classically speaking, a pennant is a continuation pattern. This means that a pennant pattern in the middle of a trend is seen as a short-term consolidation before continueing the trend. In Bitcoin's case, this would mean that we will bounce around inside the pattern for a couple more days, only to break-out on the lower side of the pattern to continue the downward bearish trend.
For the mid- and long-term, I'm still bullish on Bitcoin. Seeing this pattern, I think we'll see a period of consolidation, followed up by a bearish break-out, which will in turn act as a catalyst for the price to reverse after the initial sell-off. The key area to hold is the 31k-30k support area. This one can't fall, else we might fall even further towards potentially 25k and below.
Happy trading!
Note
Price is slightly reversing as we speak. Might go for a retest of the pennant support area.
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