Bitcoin may bounce up of support line and break resistance level

Aug 17

Hello traders, I want share with you my opinion about Bitcoin. Following a powerful upward trend and a significant breakout, bitcoin has established a new and higher territory for its price action, leading into the current phase of extensive consolidation. This consolidation has taken the form of a large upward pennant, a classic pattern of contracting volatility where the price is being squeezed between a descending resistance line and an ascending support line. The market has been rotating within these boundaries, with the seller zone around the 120000 resistance level capping rallies and the dynamic support line providing a floor for pullbacks. Currently, the asset is positioned at a critical juncture, testing the ascending support line of this multi-week formation after a corrective move down. The primary working hypothesis is a long scenario, based on the expectation of a successful upward rebound from this dynamic support. A confirmed bounce would validate the integrity of the pennant and suggest that another full rotation to the upside is the most probable path. This move would first challenge the horizontal resistance at 120000. Therefore, the ultimate TP for this rotational play is logically set at the 123700 level, as this precisely targets the upper resistance line of the pennant, representing the completion of the swing and a key decision point for a potential future breakout. Please share this idea with your friends and click Boost 🚀

Disclaimer: As part of ThinkMarkets’ Influencer Program, I am sponsored to share and publish their charts in my analysis.

Aug 18

Trade active

Price exited from pennant pattern and continues to fall. I think it can fall a little more and then start to grow.