This Bullish Pattern could Assist Bitcoin Price to Escape Market Uncertainty; Buy Today?
The largest cryptocurrency Bitcoin trapped in a consolidation phase continues to narrow its price spread as market uncertainty remains intact. In the 4-hour time frame chart it seems the coin price is getting squeezed under the influence of two converging trendlines. After the explosive rally of March’s third week, this short range within the trendlines reveals the formation of a pennant pattern. Here’s how this pattern could assist buyers to resume prior recovery.
Key Points
- The formation of a pennant pattern increases the probability for the Bitcoin price to resume its prior recovery.
- A potential breakout from the resistance trendline of the pennant pattern will be an early sign of uptrend continuation.
- The intraday trading volume in Bitcoin is $9.9 Billion, indicating a 3.6% loss
Source-Tradingview
In theory, the formation of a pennant pattern is meant to offer a short period to buyers before the bullish rally resumes. During the price consolidation, the selling pressure gets absorbed and the price showcases its sustainability at higher price levels.
Recently, the Bitcoin price in its lateral walk showed minimal spread with Doji candles, reflecting the indecisiveness among market participants. By the press time, the Bitcoin price trades at $27931 with an insignificant loss record of 0.02%.
Anyhow, under the influence of a bullish continuation pattern, the coin price is more likely to breach the overhead trendline. Interested buyers must wait for a 4-hour candle closing above the trendline to obtain an entry opportunity.
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This breakout will release the build-up of bullish momentum and breach the weekly resistance of $28830-$28750. The potential breakout from the aforementioned resistance will intensify the buying pressure to reach the next significant barrier of $32000.
On a contrary note, a bearish breakdown below the support trendline could offset the bullish thesis.
Technical Indicator
MACD: multiple crossovers between the MACD(Blue) and signal(Orange) lines accentuate the FUD in the crypto market.
EMAs: the 100 EMA slope rising along with the support trendline offers buyers additional support to prevent a significant downfall.
Bitcoin Price Intraday Levels
- Spot rate: $27959
- Trend: Sideways
- Volatility: High
- Resistance levels- $28830 and $32000
- Support levels- $25000 and $23870
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