Bitcoin (BTCUSD) is Poised for Bullish Continuation Following Pennant Formation

BTCUSD is Poised to Continue Rising with a Bullish Structure

BTCUSD is poised for a bullish continuation, having recently formed a pennant structure. The cryptocurrency is currently exhibiting one of its most robust bullish trends. Since its ascent from the $16,500 demand level in January of the previous year, Bitcoin has experienced an impressive surge, breaking through multiple resistance levels to establish a new all-time high (ATH) at $73,840—a remarkable price increase exceeding 300%.

BTCUSD Key Levels

Supply Levels: $75,000, $73,000, $69,000
Demand Levels: $64,000, $59,000, $52,000

Upon reaching $73,840, the market appeared to be at a temporary standstill as bullish momentum waned. However, signs suggest that Bitcoin’s upward trajectory may not have reached its culmination. The market has now adopted a pennant formation, recognized as a bullish continuation pattern. This formation is characterized by candlesticks tapering into a triangular shape, following a strong upswing from $47,000 to the new ATH at $73,840, creating the pennant pole.

On the daily chart, the MA period 20 (Moving Average) traverses the pennant formation alongside the candlesticks, confirming the current phase of price accumulation. Despite this, the market’s bullish sentiment remains intact, as indicated by the Relative Strength Index (RSI). While the RSI line has retreated from overbought territory, it resides in the bullish half of the chart, positioned above the 50 mark.

Market Expectations

Transitioning to the 4-hour timeframe, the ongoing price accumulation becomes even more apparent. The MA period 20 line mirrors the market’s fluctuations and currently resides below the price level. Concurrently, the RSI line oscillates across the chart, having rebounded from the oversold border and now ascending towards the overbought region. With the pennant formation approaching maturity, traders and investors can anticipate another upward breakout, potentially setting a new ATH, supported by these crypto signals.

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