Bitcoin has had an impressive year-to-date performance, exceeding 80% in just a few months. Investors were optimistic about a pennant formation in March, hoping that Bitcoin’s price would reach the measured move. A pennant is a bullish continuation pattern consisting of a consolidation that takes the form of a triangle after a market rally. The market did rally, and Bitcoin’s chart showed a bullish breakout from the triangle, signaling more upside. However, traders must factor in the time element when analyzing patterns, and the longer it takes for the market to reach the measured move, the more likely it is that the pattern will be invalidated. The 28k area is a crucial level for Bitcoin; a drop below that point would invalidate the pennant pattern and put the YTD performance at risk. In conclusion, Bitcoin’s bullish trend will continue if the market holds above 30k, but failing to do so brings the 28k invalidation level into focus.
