Litentry bullish pennant chart pattern? A technical analysis pattern known as a bullish pennant appears on chart when an asset's price increases significantly, followed by a brief period of consolidation during which the price moves in a narrowing range, forming a pennant shape. The trade volume and volatility tend to be lower during this period.
The market is likely to resume its upward movement after the consolidation phase is over, according to the pattern, which indicates that traders are taking a break following a powerful uptrend. The prior bullish trend frequently resumes when the price breaks out to the upside from the pennant formation.
In order to validate the likelihood of the uptrend continuing, traders may search for additional bullish indicators, such as strong trading volume or encouraging news about the asset. But, it's crucial to keep in mind that in order to make wise trading decisions, technical analysis patterns like the bullish pennant should be utilized in conjunction with other tools and analysis methods.
The posted photo shows the possible targets along with its support and resistance key levels prices as follow:
Lower support level:
0.803 - If this level breaks, my technical analysis will be invalid, and this price level will be considered as a break of structure, implying that price may go deeper than anticipated.
Lower resistance level:
0.989 and 1.010
Middle resistance level:
1.093 and 1.129
Upper resistance level:
1.209 and 1.254
Upper target as follows:
fair value gap at 1.544
fair value gap at 1.568
fair value gap at 1.593
bonus if market will break price at 1.742
But, the market structure may change, and the likelihood of success in this trade is extremely low given that bitcoin is displaying a bearish divergence.
Disclaimer: The author's personal view may be included in the information, which is subject to market conditions. Before making a cryptocurrency investment, do some market research. Your individual financial loss is not the responsibility of the author or the publisher.