Technical Analysis and Market Entry: Bitcoin Bulls Have Broken Another Pennant Pattern
- Bitcoin price is moving firmly within a bullish trend, with no slowdown in upside momentum insight.
- BTC/USD has breached another near-term bullish pennant pattern, leaving the door open.
BTC/USD: Recent Price Behaviour
Bitcoin bulls remain firmly within the driver’s seat, as the price continues its move north. It can be seen trading at its highest levels seen since October 2019. BTC/USD has been firmly on the rise from the start of 2020, making steady progress for greater recovery. The moves come after the beating encountered throughout the second half of 2019. Bitcoin fell from the heights of $14,000 in June, before ultimately losing upside momentum.
Given the current pace of upside pressure, further moves north are still very much eyed. The high of 2019 could be dwarfed in no time, which may even invite another flood of buyers. Bitcoin bulls this time have a head start, in comparison to the runs higher seen in 2017 and 2019. In the prior years, BTC/USD started the moves north at $1200 and $3500 respectively. On the current bull run, the price commenced the year at $6500.
Weekly Chart View
Bitcoin has now been trading and set to close in the green for another week, which would mark two straight weeks. Although, BTC/USD has been rallying five weeks, having gained a chunky 35% at the time of writing, within the noted period. It is the most promising run to the north observed since April-May 2019. The current bull run picked up momentum following an explosive breakout, BTC/USD has been moving within a bull flag structure.
The above-detailed bull flag had previously been containing the price from June until early January. Buyers were able to force a breach in the week of 13 January, which since has continued to play out to the next book. In theory, BTC/USD should go on to complete a move equal to the length of the flag pole, which was some $9000. The flag breakout level should be noted at $8000, which should then see the price at least returning to $17,000.
Price action via the 4-hour chart view has recently breached a bullish pennant pattern, inviting for greater upside momentum. Further entries are attractive from the current market price, targets eyed at; $10,200, $10,400 and then $11,000. Stops placed just below the pennant at $9640.
Disclaimer: The author owns Bitcoin, Ethereum and other cryptocurrencies. He holds investment positions in the coins, but does not engage in short-term or day-trading.
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