Bitcoin : $60,000 approaches, learn about the Bull Pennant
Hello, just a really brief update for Bitcoin.
If you saw my last idea it is progressing well and the Falling Wedge Pattern is still playing out to the upside. (Click below for a brief overview of why I think Fundamentally bitcoin is still bullish):
This can also be considered a ugly version of a Bull Pennant Pattern which I will explain below.
Bull Pennants are a little different to Bull Flags but are almost identical in appearance and are traded basically the same.
The most important factor in identifying any flag or pennant pattern is the clear "staff" or "flagpole"; there should be a straight run upwards leading up to the pattern or it is not a valid pattern.
After the straight run upward price starts to Zig Zag between two converging trendlines forming a tight wedge (it can be slanted, or even symmetrical) until the price "breaks out" above the upper trendline signifying a possible continuation in trend upwards.
Bull Flags and Bull Pennants have the highest success rate out of any pattern and work extremely well when paired with long term support & resistance areas. Enter at the invalidation point of the pattern (A), second entry on the bullish retest (B). Pennants that are “tighter” have higher success rates, look for patterns forming on top of long term resistances (not below) to increase probability of success also. Pattern height is measured and added to swing low before breakout for possible target.
Sometimes large size traders can generate liquidity by faking out under the pattern support as we can see on this current example with ADA. The liqudity generated by triggering stop losses underneath the pattern can fill large position sizes for whales and is a good indicator for a long once the price confirms support back inside the pennant .
Some key points:
• PRICE MUST MOVE STRAIGHT UP BEFOREHAND
• MIN 2 Touches each side on almost symmetrical looking wedge
• HIGH SUCCESS RATE
• BEST ENTRY IS often when price fakes out under support (Marked at A)
• Pattern height is measured and added to swing low before breakout for possible target
So while the price continues to move in this Pattern structure is is a great sign for Bitcoin to continue to increase in value here, It looks like as long as we stay above $40,000 region this has a good chance of playing out.
Dont forget to hit like & leave your comments if you like the idea thank you traders!
If you saw my last idea it is progressing well and the Falling Wedge Pattern is still playing out to the upside. (Click below for a brief overview of why I think Fundamentally bitcoin is still bullish):
This can also be considered a ugly version of a Bull Pennant Pattern which I will explain below.
Bull Pennants are a little different to Bull Flags but are almost identical in appearance and are traded basically the same.
The most important factor in identifying any flag or pennant pattern is the clear "staff" or "flagpole"; there should be a straight run upwards leading up to the pattern or it is not a valid pattern.
After the straight run upward price starts to Zig Zag between two converging trendlines forming a tight wedge (it can be slanted, or even symmetrical) until the price "breaks out" above the upper trendline signifying a possible continuation in trend upwards.
Bull Flags and Bull Pennants have the highest success rate out of any pattern and work extremely well when paired with long term support & resistance areas. Enter at the invalidation point of the pattern (A), second entry on the bullish retest (B). Pennants that are “tighter” have higher success rates, look for patterns forming on top of long term resistances (not below) to increase probability of success also. Pattern height is measured and added to swing low before breakout for possible target.
Sometimes large size traders can generate liquidity by faking out under the pattern support as we can see on this current example with ADA. The liqudity generated by triggering stop losses underneath the pattern can fill large position sizes for whales and is a good indicator for a long once the price confirms support back inside the pennant .
Some key points:
• PRICE MUST MOVE STRAIGHT UP BEFOREHAND
• MIN 2 Touches each side on almost symmetrical looking wedge
• HIGH SUCCESS RATE
• BEST ENTRY IS often when price fakes out under support (Marked at A)
• Pattern height is measured and added to swing low before breakout for possible target
So while the price continues to move in this Pattern structure is is a great sign for Bitcoin to continue to increase in value here, It looks like as long as we stay above $40,000 region this has a good chance of playing out.
Dont forget to hit like & leave your comments if you like the idea thank you traders!
