From May12 - June 12, CME Bitcoin Futures saw a support level of ~28,000, which was broken on June 12 with a GAP lower.
We have recently seen a CONSOLODATION PENNANT, formed with higher lows, and lower highs!
Higher lows: ~18,500 June 30, ~18,830 July 13, ~20,700 July 26. The UPTREND line is drawn from ~18,830 to~20,700.
Lower highs: ~24,300 July20, ~23350 July 22, ~23,000 July 27. The DOWNTREND line is drawn from all 3.
The BREAKOUT occurred once the CME Bitcoin Futures broke through ~23,000!
How to measure upside potential after a BREAKOUT of a PENNANT:
Calculate the distance from the widest point, and add to the BREAKOUT point. This would give us ~28,800.
Why is ~28,800 significant? THIS WOULD FILL THE GAP MADE ON JUNE 12! GAPS tend to be filled before a market makes a pivot!
Takeaways:
Previous SUPPORT of ~28,000 is now new RESISTANCE. This is going to be a difficult level to chew through!
Possible STOP levels for longs:
~21,500 (continuation of UPTREND line of PENNANT.
~Uptrend will be violated if ~20,700 is broken with conviction. This would now be a lower low, which is the definition of a DOWNTREND.
FEEL FREE TO REACH OUT WITH ANY TECHNICAL ANALSYS OR FUTURES QUESTIONS!
WE APPRECIATE OUR FOLLOWERS! LIKE/COMMENT/FOLLOW! ❤️
We have recently seen a CONSOLODATION PENNANT, formed with higher lows, and lower highs!
Higher lows: ~18,500 June 30, ~18,830 July 13, ~20,700 July 26. The UPTREND line is drawn from ~18,830 to~20,700.
Lower highs: ~24,300 July20, ~23350 July 22, ~23,000 July 27. The DOWNTREND line is drawn from all 3.
The BREAKOUT occurred once the CME Bitcoin Futures broke through ~23,000!
How to measure upside potential after a BREAKOUT of a PENNANT:
Calculate the distance from the widest point, and add to the BREAKOUT point. This would give us ~28,800.
Why is ~28,800 significant? THIS WOULD FILL THE GAP MADE ON JUNE 12! GAPS tend to be filled before a market makes a pivot!
Takeaways:
Previous SUPPORT of ~28,000 is now new RESISTANCE. This is going to be a difficult level to chew through!
Possible STOP levels for longs:
~21,500 (continuation of UPTREND line of PENNANT.
~Uptrend will be violated if ~20,700 is broken with conviction. This would now be a lower low, which is the definition of a DOWNTREND.
FEEL FREE TO REACH OUT WITH ANY TECHNICAL ANALSYS OR FUTURES QUESTIONS!
WE APPRECIATE OUR FOLLOWERS! LIKE/COMMENT/FOLLOW! ❤️
Trade active:
Currently still above the Up Trendline described above. Hang tight!
Trade active:
Reaching Trendline Support