BTCUSD - Getting ready to rip?

We have been in the green channel since Jan 2023. It's a clean channel with symmetrical touch points on the top and bottom. There is room to go either way and still stay within the channel.

Now at the center of the channel, we have the obvious pattern forming: a bullish pennant.

The interesting thing is that there's a convergence between the extension of the pennant and the top of the green channel. That's around $135K in mid-May.

One thing I have seen many times charting BTC over the years is that a pattern everyone sees (like this pennant) will confirm to the upside, get a bunch of leveraged longs in, and then break hard to the downside to liquidate them before ripping up again. That's the most likely scenario I'm looking for.

Let's watch and enjoy.

Kommentera:

There is one more convergence here. The high volume around $51-53K we experienced in mid-February converges with the bottom of the channel. If this pennant were to break to the downside, I'm looking for support in that range.

I will be buying there while the rest of the market will be in absolute panic mode.

Let's be ready for both scenarios.

Handel aktiv:

OK there's our big break upwards to $71,900
Now the higher probability path is continuing upwards to new ATH and beyond.
Open long, stop loss at $68,500.

Kommentera:

Looks like it won't be "up only" after the strong breakout.
If a retest of the pennant is coming, I have it hitting at around $70,300.
I'm still looking for a hard break to the downside to liquidate leveraged longs before taking off upwards as my most likely scenario.