Bitcoin [BTC] Pennant Pattern Reaction Sets Eyes $13,000 if not $9,000

  • Bitcoin spectacularly zoomed above $11,000 after reclaiming $10,000 support.
  • The current trend in a technical perspective has an inclination towards sideways trading.

Bitcoin buyers are fighting tooth and nails stop the price from gravitating below the vital $11,000 support area. They yearning for the support area defends comes after BTC retreated from last week’s high at $12,342 (on Coinbase). Besides, the incredibly inspiring move above $12,000 was as a result of a second leg of the correction from the July low at $9,065.

Initially, Bitcoin stepped above both the 50 Simple Moving Average one-hour charts and the 100 SMA 1-hour. This move opened eye-popping support for BTC, in turn, propelling the price past $10,000. In addition to the jaw-dropping support, the 50 SMA was instrumental for the second leg above $10,500. Hence, Bitcoin spectacularly zoomed above $11,000. Improved bulls’ confidence in the price sent Bitcoin past $12,000. Unfortunately, a high formed amid diminishing buying power ending in retracement towards the above-mentioned $11,000 support.

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BTC/USD hourly chart

Btc usd
BTC/USD chart by TradingView

Meanwhile, Bitcoin is trading at $11,145 as bearish hostility builds. The upside is capped by the 50 SMA 1-hour currently at $11,380. If the price manages to clear this hurdle, expect Bitcoin to come face to face with the resistance at the 100 SMA 1-hour at $11,500.

On the brighter side, Bitcoin is trading with a pennant pattern. This pattern and other flag patterns signal price movement following a consolidation movement. In this case, Bitcoin is likely to continue with the surge above $12,000 with an aim of $13,000 in the near-term.

The current trend in a technical perspective has an inclination towards sideways trading. For instance, the Moving Average Convergence Divergence (MACD) is hugging tight on the mean line (0.00). This suggests that Bitcoin will continue to trade sideways above the support at $11,000. Moreover, consolidation will give way for the pennant pattern breakout.

BTC Key Technical Indicators

Support areas: $11,000, $10,500 and $10,000 and $9,000.

Resistance: $11,400, $12,000 and $13,000.

MACD: Zero divergence hints sideways trading.


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