🔥 Bitcoin Formed A Pennant: Consolidation Ahead?

Yesterday I made a post about the short term movement of Bitcoin. I foresaw a deeper drop than the one we have seen yesterday, it appears that the previously mentioned 34k support is stronger than thought initially. Please take a look below:

With the strong bounce from the 34k support, a pennant pattern has emerged. If bullish pressure continues, the price will follow this pattern in the near term. Main areas of interest are 40k, 34k and 31k.

Classically speaking, a pennant is a continuation pattern. This means that a pennant pattern in the middle of a trend is seen as a short-term consolidation before continueing the trend. In Bitcoin's case, this would mean that we will bounce around inside the pattern for a couple more days, only to break-out on the lower side of the pattern to continue the downward bearish trend.

For the mid- and long-term, I'm still bullish on Bitcoin. Seeing this pattern, I think we'll see a period of consolidation, followed up by a bearish break-out, which will in turn act as a catalyst for the price to reverse after the initial sell-off. The key area to hold is the 31k-30k support area. This one can't fall, else we might fall even further towards potentially 25k and below.

Happy trading!

Comment:

Price is slightly reversing as we speak. Might go for a retest of the pennant support area.