Bitcoin price broke higher today from a pennant formation. A continuation pattern, it concentrates the price action in a small triangular formation. Following today’s breakout, the measured move indicates that strong bullish momentum should continue towards the 15,000 level.
Interestingly, Bitcoin price’s consolidation over the last few days comes after it broke out of another continuation pattern. Bitcoin moved in a tight range for more than two months and just recently popped higher.
Goldman Looks Into Creating Its Own Fiat Digital Token
It is thinking of creating a blockchain-based answer to Bitcoin, closely following on the JP Morgan footsteps. If anything, the investment bank’s renewed interest in the crypto area is a bullish sign for existing cryptocurrencies as it shows the market’s potential.
Bitcoin Price Technical Analysis
Once again, the Bitcoin price breakout happened during the weekend. The price action concentrated in tighter ranges, and right after the Sunday’s close the market broke higher.
It is not only about the Bitcoin price in USD, but also in EUR. It topped 10,000 for the first time since August 2019, showing renewed interest in alternative investments.
Any pennant has a measured move. In this case, it is the distance from the previous breakout to the current consolidation. When projected from today’s breakout, it points to Bitcoin price reaching close to $15,000. This is the projected target offered by the pennant and needs a stop-loss right below the last consolidation.
A close look at the risk-reward setup reveals a ratio that exceeds 1:2. Pennants are known for appearing during strong trends, which implies that the price will make little or no pullbacks on its trip to the $15,000 area.