Bitcoin Price Forecast – Pennant Breakout Eyed, Bitcoin Chart Coiled
KEY HIGHLIGHTS:
- The crypto can be a great cusp of the next higher after its latest consolidation.
- The bitcoin price action is based on the Bollinger band squeeze and the possible pennant pattern.
- Bitcoin prices drifted lower since the advancement of the March base that faded last month.
The performance is one route for another great year after the bitcoin prices trading over 25% higher since early this year. After it had succumbed to the steep selloff alongside all the asset classes’ early March and late February that came during the peak market turmoil that had been induced by COVID-19 pandemic, bitcoin price then staged a remarkable 100% rally.
It is this Bitcoin influx buying pressure that helped to propel the Bitcoin vs. US Dollar back over the current $10,000 price action by early June. However, in the past few days, the cryptocurrency has retraced a quarter of its latest bullish outlook. This is because of the moderate pullback with the BTC currently trading over the $9,000 price territory on balance.
BITCOIN PRICE CHART
Source – Trading View
In this regard, the bullish pennant pattern may have been created from the latest consolidation in bitcoins price action. The current pennant chart patterns are created through a string of the higher lows and lower highs as the price action coiled into the tightly wound spring. The pennants usually assume this shape after the huge directional moves and possibly show the start of a wider trend continuation.
The bitcoin prices currently approach the ‘break of necessity’ because of the converging bullish and bearish trendlines that are shown by an array of high lows and an array of lower highs that have been recorded since early 10th May. Finding that this pennant pattern breakout might signal the resumption of trends, the bitcoin may be on the verge of a new sharp advance, particularly if the cryptocurrency could surmount the negatively sloped trendline.
BITCOIN PRICE CHART
The prices of bitcoin are currently compressing into a much tighter range over the past few weeks and can be underscored using the Bollinger bands. The Bollinger band squeeze shown by the reducing Bollinger bandwidth from early may signal the continued consolidation in bitcoin price action. Moreover, it is highly likely that the low channel line has offered more technical support to the bitcoin price since late June.
This has been shown by the bitcoin prices indicating buoyancy according to the bottom Bollinger band with the daily candlestick wicks remaining well contained by the low barrier on the percentage basis. Having said that, the 50-DMA might prevent the BTC bulls from trying to nudge the price higher. With this regard, eclipsing the technical barrier surrounding $9,400 may open doors for an upside breakout towards the all-year high. This is the bullish scenario that can get additional credence incase followed by the Bollinger band expansion. Also read Bitcoin Eyeing a $1,000 Crash as Bias Conflict Deepens.
