Bitcoin Preparing For Break Out: Pennant Analysis

In my previous Bitcoin analysis I predicted that bitcoin would follow the pennant, which it has done for now. Now, we're at a point where the pennant chart pattern is almost completed. With every passing hour, the chance of Bitcoin breaking out is becoming bigger and bigger.

Since the crypto markets are a bit on edge now, suffering from being overbought across the board, this pattern is not necessary a bullish one. Therefore I've added two possible outcomes, a bearish and bullish one.

To trade this pattern one should first of all wait for a break of the pattern. In case you want to be more sure of the direction, wait for the price to break the confirmation line and trade that direction. Higher time frames yield a higher predictive power.

On the chart I've marked a support and resistance line which could serve as short term targets in case of a break out.

Happy trading!