For the first time in a long time, Bitcoin price decouples from gold and trades in a “universe” of its own. From a technical perspective, we can argue for two patterns, both bullish. One may be an ascending triangle, which has a measured move pointing to a little over $17.5k. Another may be a pennant, with a measured move a thousand dollars higher.
Whatever the pattern is, it does not matter. What matters is that Bitcoin manages to hold the higher lows series and higher highs, a condition mandatory in any bullish trend.
Bitcoin Decoupling from Gold
One of the most interesting aspects when looking at Bitcoin recently is its decoupling from the overall risk sentiment. For most of the 2020 pandemic, Bitcoin and gold moved in similar directions. Moreover, the two enjoyed a positive correlation.
However, the recent developments after the announcement of a COVID-19 potential vaccine from Pfizer and BioNTech triggered a decline in the gold price. However, such a decline was not followed by Bitcoin. As a matter of fact, Bitcoin managed to find buyers on each and every dip and, as a result, it formed this bullish pattern.
Bitcoin price is already up substantially since PayPal announced the cryptocurrency integration on its online platform. More precisely, it is up about 50% or so. Can it move even higher for the rest of the year? Judging by the pattern seen below – it can.
Bitcoin Price Technical Analysis
An ascending triangle reveals the price building energy against a horizontal base. In doing so, it manages to keep the series of higher lows intact. Moreover, by the time that the horizontal resistance gives way, there is no significant resistance until the measured move of the triangle is reached. That is, a move similar to the longest wave of the triangle.
As such, bulls may want to wait for a break above $16,000 before going long for $17,5k or $18,5k if they think a pennant is in place. In both cases, a move below $14,8 invalidates the pattern.