BITCOIN - Bearish pennant pattern nearing breakout point

May 23, 2018

Bitcoin has been forming a bearish pennant pattern since early 2018. When looking at the pennant we generally make our bias whatever price was doing going into the start of the pattern. In this case the pennant began shortly after a very strong selloff in bitcoin that saw 50% of it's value disappear. That would make this pennant bearishly biased and we would be watching for opportunities to short, especially on a downside break of this large pennant pattern. If price does break down the nearest major support is 5900-6000 and if that were not to hold the next support range is 4900-5000.