BITCOIN FORECAST: BTC/USD PRICE FORMS PENNANT CHART PATTERNBitcoin (BTC/USD) has ping-ponged backwards and forwards over latest buying and selling
BITCOIN FORECAST: BTC/USD PRICE FORMS PENNANT CHART PATTERN
Bitcoin (BTC/USD) has ping-ponged backwards and forwards over latest buying and selling classes looking for its subsequent huge transfer. The cryptocurrency now appears coiled right into a tightly wound spring as BTC/USD value motion fluctuates between two converging trendlines. This brings to focus potential for Bitcoin volatility to speed up following a breakout from the pennant sample that seems to have fashioned.
BTC/USD – BITCOIN PRICE CHART: DAILY TIME FRAME (25 FEBRUARY TO 01 JUNE 2021)
Chart by @RichDvorakFX created utilizing TradingView
Bitcoin bulls and bears have been clashing over the place the crypto heads subsequent as value motion consolidates following a -50% selloff from all-time highs. A string of upper lows are forming from rebound efforts off the $30,000-price degree, however that is mired by consecutively decrease highs amid prevailing downward strain. As such, it’s value protecting in thoughts that one distinct attribute of a pennant sample is the ‘flagpole’ that precedes the pennant. It’s also vital to recollect this chart sample, usually talking, signifies sturdy potential for a continuation of the latest development (i.e. route of the flagpole).
BTC/USD – BITCOIN PRICE CHART: WEEKLY TIME FRAME (10 FEBRUARY 2020 TO 01 JUNE 2021)
Chart by @RichDvorakFX created utilizing TradingView
BTC/USD value outlook thus appears to go away the cryptocurrency liable to extending decrease within the short-time period. This bearish situation may warrant extra credence if Bitcoin bears can invalidate ascending trendline help. That stated, the $30,000-price degree appears like a formidable layer of protection and will assist preserve BTC/USD afloat. Failure to keep up this space of help doubtless exposes the $17,000-handle underpinned by the 78.6% Fibonacci retracement degree of Bitcoin’s March 2020 to April 2021 buying and selling vary. If Bitcoin can overcome nearside technical resistance with an in depth above the $40,650-price degree, nevertheless, this would possibly open up the door for bulls to make a push towards $50,000.
— Written by Wealthy Dvorak, Analyst for DailyFX.com
Join with @RichDvorakFX on Twitter for real-time market perception
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