🔥 Bitcoin Potentially Reversing: Pennant Continuation

Jun 2, 2021

In my previous Bitcoin analysis I argued that BTC would see a continued uptrend, with the pennant resistance as the first major hurdle to overcome. See the link below for reference. In my current analysis I've moved a few trend lines slightly to better illustrate the current picture.

As seen on the chart, BTC is currently residing at the top resistance of the pennant. The current 1H candle is engulfing most of the prior consolidation candles, which is bad news for bulls in the short term.

Significant buying power is needed in order to push BTC out of the pennant, which I'd be surprised to see at this point. In case we break out of the pennant tonight, 40k is the next big hurdle to take.

Personally, I think we will continue to follow the pennant in the coming days. 35k is the main target for the next 48 hours. After that, things are uncertain. A bullish move could propel the price towards the pennant resistance in no-time, where we'd face the exact same issue as we face now.

A bearish break out would "classically" be expected. As argued in my previous analysis, a pennant is a continuation pattern. Since the overall trend is bearish, we might fall back to 31k or even lower.

Happy trading!

Jun 3, 2021

Note

Price broke through the resistance. Now it's a matter of seeing wether it's a fake out or an actual break out. Trend line could be drawn through the wicks as well, so not 100% convinced yet.