It is no co-incidence that we are seeing serious battle going on between buyers and sellers, on what direction Bitcoin price should take from here next. This is not new after a strong sharp upward move from 20k range to 40k range, we see the buyers white support being constantly attacked by the sellers (bears) and fearlessly defended by the Buyers(bulls).
But looking closely we see that even though the sellers are fighting hard, price doesn't seems to move any farther down but instead we watch as Bitcoin Buyers strength keep growing , bulls are holding tightly to the continuation pattern about breaking out called the (this is a trading range or consolidation pattern.)
At this point it feels fearful as price keeps going back and forth but as long as the buyers trendline is respected, expect to see an explosive measured move to the upside as a result of equal measured target of the flag pole.
What is a and how do you trade it?
A simply represents a continuation pattern that forms to mark a short term pause in the movement of a price halfway through a strong uptrend, there by giving you a trader the opportunity to Buy and join the trend. It is a continuation pattern because over 85% of the time the trend will continue on it way up, the same direction before the pause occurred.
This is what this pause looks like on the Weekly chart
This means the pause is temporary and that the sharp climb in price would resume after that brief period of consolidation, when bulls gather enough energy to take the price higher again.
resemble a triangular flag as the price moves sideways, making gradually lower highs and higher lows. the major characteristics is the flag pole, this is represented by the move before the pause occurred.
How do you trade a Pennant?
like I stated earlier that for a to form, price will first need to make a strong sharp movement to the upside. This first strong price upward movement is called a flag pole and its size is important when you are calculating where to place the profit target for your buy trade position.
Here are my simple easy methods for trading a .
Please read my previous post if you are interested on the 3 strategy for trading a range.
The current support at 34560 all the way to 33600 area is clearly a buy zone that the bulls are likely to defend strongly, If the sellers succeed to break it and make their way below to 32k , then it will be tough crack and bye bye to bulls, but if instead the white trendline hold up and we get a bounce above 39k, that will be a bye bye bears time as next will be short Squeeze.
ones the current bull white trendline holds we will see an equal measured move same as the height of the flag pole to the upside, this happens to be exactly the $60k range move