If we look at the 4H chart of Bitcoin, we can see a pennant chart pattern. It’s a continuation pattern and mainly after a breakout of its signal line, a market continues the previous trend. The pennant is formed by support and resistance lines converge towards each other. We have to trade this pattern based on a breakout signal.
As it’s a continuation pattern we should expect that price moves upward and breaks the resistance line. Entry level for long trades should be above 2790.00 with stop orders below 2710.00 level. Profit target must be near 3000.00 resistance level. If you don’t use leverage, recommended trading volume for this trade is up to 3% from your deposit.
Profit Targets: 2980.00
The trading signal is based on Kraken chart.