• Bitcoin price has rallied more than 80% since the start of 2023.
• Investors were betting on a pennant formation in March to reach the measured move of 28k.
• A failure to hold above 30k could invalidate the bullish formation and put Bitcoin’s YTD performance in danger.
Bitcoin Price Rally
Bitcoin started off 2023 with a bang, rallying more than 80% from its previous year’s low. This surge in price had investors hoping for even more gains and that was helped by the formation of a pennant pattern on the market.
A pennant is a bullish continuation pattern which involves a consolidation taking the form of a triangle and before this usually comes an initial rally. Traders were expecting that after the bullish breakout from this triangle, there would be another similar rally reaching the ‚measured move‘ indicated by orange line – 28k – within roughly the same time it took for the triangle’s formation.
The ‚beauty‘ of this pattern is that it allows traders to incorporate time into their analysis giving them an advantage as they know when they should expect prices to reach certain levels. However, if Bitcoin fails to stay above 30k then this would signal an invalidation of this pattern, putting its YTD performance at risk.
In conclusion, time is ticking for Bitcoin investors who are hoping for further gains as if it fails to stay above 30k then it will invalidate any potential upside and make its current YTD performance vulnerable.