Bitcoin price broke the all-important 10k level after a long-term consolidation. Having difficulties overcoming dynamic and horizontal resistance, it formed a pennant before the current break. The outcome? Bitcoin price goes for the measured move, targeting $15,000.
This break, too, came during illiquid times. It is not unusual for the crypto market to make decisive moves over the weekend. When traders are not active, someone knows the most sensible time to trigger a move.
This past week was especially important. Not only that the Bitcoin price broke above the $10k level, but it also collapsed in a matter of seconds, whipping out some weak retail traders’ accounts.
Another Bitcoin Flash Crash
In a matter of seconds, over 70,000 positions in retail accounts were liquidated. After reaching 12k, Bitcoin price dipped $1,500. Just like that.
Bybt, a Bitcoin and crypto market data provider, said that a $10 million worth of selling came via one single order from Bitmex. However, the $10,000 area acted as support now, and Bitcoin price survived its first test after the pennant formation broke higher.
Bitcoin Price Broke Higher from a Pennant Formation
Speaking of the BTCUSD pennant on the daily chart, it broke higher after more than two months of consolidation. Its measured move equals the distance of its poll, projected from the breakout point. It calls for $15,000-$16,000 sooner rather than later.
Moreover, some traders also use the time elements when trading a pennant formation. It means that a pennant’s measured move should be reached in less than the time it took the pennant to form. More precisely, we should see $15,000 in about two months since last weekend’s breakout.
If we add to this bullish setup the inversed head and shoulders in play, we have more arguments for remaining bullish on Bitcoin. More importantly, the fact that it survived the flash crash makes the bullish case even stronger. Therefore, staying long with a stop-loss at $9600 and a take profit at $15,000 makes sense so as to make the most of all three things pointing to a higher Bitcoin price.
Bitcoin Price Forecast