31 July 2020

BTCUSD longs daily chart

Bitcoin broke out of the legendary triangle for the first time since 2017, bullish pennant target marks $12,600, ETH is due for a correction and BTC total hash rate is at an all-time-high

BTC/USD weekly chart

31 july btcusd weekly

An important event occurred on the weekly chart, as Bitcoin broke out of a major triangle pattern. Bitcoin has remained within this triangle since the previous bull run in 2017, making the most recent price spike notable as it effectively broke this long lasting pattern. Breaking to the upside is obviously a bullish sign, but there is even more bullish news in the daily chart.

BTC/USD weekly chart

31 july btcusd daily

Bitcoin seems to form a bullish pennant on the daily chart. A pennant is a continuation pattern: where a significant move that resembles a flagpole is followed by a consolidation period where converging lines create a sudo triangle. This often results in a breakout in the same direction as the original flagpole. If this is the case, we are talking about the next target being at the $12,600 price mark.

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