Bitcoin (BTC/USD) has recently demonstrated strong bullish structure following an extended consolidation phase. The current price action suggests a textbook bullish pennant breakout, which often indicates trend continuation in strong markets. This technical setup follows a period of accumulation and consolidation between March and April, with a well-defined pennant formation leading into the breakout in early May.
Technical Analysis:
Historical Context & Structure:
From mid-February to March, BTC experienced significant downward pressure, eventually finding major support in the $76,000–$78,000 zone, which is clearly outlined on the chart as a key support level.
This support zone initiated a reversal, forming the base of a new bullish leg that marked the beginning of the next trending phase.
Consolidation Phase – The Ellipse Region:
The price action within the elliptical region (mid-March to late April) reflects accumulation behavior, with multiple rejections on both upper and lower bounds, indicating balance between buyers and sellers.
This phase formed a foundational structure, setting up the stage for a breakout pattern.
Pennant Formation (Late April – Early May):
The price sharply rallied in late April, breaking out of the consolidation and moving into a tight triangular pennant pattern — a classic continuation formation.
This bullish pennant features converging trendlines, lower volume, and diminishing volatility as price consolidates — all typical characteristics.
Breakout and Retest:
The breakout from the pennant occurred on high momentum with strong bullish candles.
Post-breakout, the price approached the resistance zone (~$103,000–$105,000) and is currently attempting to establish support at this level.
This retest adds validity to the breakout and opens the door for further upside continuation.
Trade Parameters:
Entry Zone: Breakout above the pennant (~$99,000–$100,000), confirmed by momentum.
Resistance Zone: $103,000–$105,000 (currently being retested).
Target (Measured Move):
Using the height of the pennant pole (~$20,000 move from $80K to $100K), the projected target lies near $107,307, aligning with horizontal resistance.
Stop Loss:
Set at $93,344, just below the pennant’s lower boundary. This level also aligns with recent structural support and invalidation of the pattern.
Risk/Reward Ratio:
Approx. 1:2.5+, offering a favorable setup assuming trend continuation.
Additional Notes:
Volume:
Although not shown, breakouts from pennants are ideally confirmed by an increase in volume, indicating market conviction. Volume confirmation is highly recommended for trade confirmation.
Market Context:
This setup aligns with broader bullish sentiment in the crypto space and may be reinforced by macroeconomic or ETF-related developments. However, risk management remains key, especially around psychological levels and news-driven volatility.
Conclusion:
Bitcoin is currently in a strong technical position. The breakout from the bullish pennant pattern following prolonged consolidation signals continuation of the prevailing uptrend. Traders should watch for sustained price action above $103K for confirmation. A pullback or retest toward this level can present re-entry opportunities before a potential move toward $107K. Tight risk management is advised with stops below $93K.
Technical Analysis:
Historical Context & Structure:
From mid-February to March, BTC experienced significant downward pressure, eventually finding major support in the $76,000–$78,000 zone, which is clearly outlined on the chart as a key support level.
This support zone initiated a reversal, forming the base of a new bullish leg that marked the beginning of the next trending phase.
Consolidation Phase – The Ellipse Region:
The price action within the elliptical region (mid-March to late April) reflects accumulation behavior, with multiple rejections on both upper and lower bounds, indicating balance between buyers and sellers.
This phase formed a foundational structure, setting up the stage for a breakout pattern.
Pennant Formation (Late April – Early May):
The price sharply rallied in late April, breaking out of the consolidation and moving into a tight triangular pennant pattern — a classic continuation formation.
This bullish pennant features converging trendlines, lower volume, and diminishing volatility as price consolidates — all typical characteristics.
Breakout and Retest:
The breakout from the pennant occurred on high momentum with strong bullish candles.
Post-breakout, the price approached the resistance zone (~$103,000–$105,000) and is currently attempting to establish support at this level.
This retest adds validity to the breakout and opens the door for further upside continuation.
Trade Parameters:
Entry Zone: Breakout above the pennant (~$99,000–$100,000), confirmed by momentum.
Resistance Zone: $103,000–$105,000 (currently being retested).
Target (Measured Move):
Using the height of the pennant pole (~$20,000 move from $80K to $100K), the projected target lies near $107,307, aligning with horizontal resistance.
Stop Loss:
Set at $93,344, just below the pennant’s lower boundary. This level also aligns with recent structural support and invalidation of the pattern.
Risk/Reward Ratio:
Approx. 1:2.5+, offering a favorable setup assuming trend continuation.
Additional Notes:
Volume:
Although not shown, breakouts from pennants are ideally confirmed by an increase in volume, indicating market conviction. Volume confirmation is highly recommended for trade confirmation.
Market Context:
This setup aligns with broader bullish sentiment in the crypto space and may be reinforced by macroeconomic or ETF-related developments. However, risk management remains key, especially around psychological levels and news-driven volatility.
Conclusion:
Bitcoin is currently in a strong technical position. The breakout from the bullish pennant pattern following prolonged consolidation signals continuation of the prevailing uptrend. Traders should watch for sustained price action above $103K for confirmation. A pullback or retest toward this level can present re-entry opportunities before a potential move toward $107K. Tight risk management is advised with stops below $93K.
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Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
For Daily Trade Setups and Forecast: 📈 t.me/xauusdoptimizer
Premium Signals Fr33: 💯 t.me/xauusdoptimizer
🥰🥳🤩
Premium Signals Fr33: 💯 t.me/xauusdoptimizer
🥰🥳🤩
Related publications
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.