Last week I wrote about a pennant
pattern on the 4H time frame of Bitcoin
as a continuation chart pattern. You can find the link to this post in the related ideas. That chart pattern was not realized as a continuation pattern and after breaking the support line, we saw downward movement to 2400.00 support level
. Today we have a new chart pattern which can be spotted as a big pennant
or a small simetrical triangle. It does not matter which pattern you prefer, they are both belong to the group of continuation chart patterns. It means that we should expect the resistance line breakout with further upward movement. But don't forget that even if the market moves upward, 2900.00 and 3000.00 resistance levels will be strong barriers for this price movement. We should be very careful with all our long trades. Also, we have to be ready for a possible breakout below the support line. If price drops below this line, this chart pattern won't be realized as a continuation pattern again. We'll see downward movement to the uptrend line at least. If the market can break the uptrend line and 2600.00 support level
, it will fall to 2400.00 level or even lower. Before SegWit, price movements are not stable. Watch for any price movements inside the symmetrical triangle and be ready for breakouts above or below the signals lines.