Bitcoin decisively broke through the resistance it previously faced at $7,200
It now appears that BTC broke out of a bullish pennant that could help push it higher in the days and weeks ahead
This pennant now has serious “coiled power” as bulls were able to spark a movement within a key timeframe.
After recapturing its position within the lower-$7,000 region, Bitcoin bulls have been able to post a massive breakout rally that sent the crypto surging to the mid-$7,000 region.
The benchmark cryptocurrency has now broken out of key level that previously proved to be incredibly important during its last bout of trading within its current price region.
There is also one emerging technical pattern that could help further boost BTC in the days ahead, as it now appears that bulls were able to confirm its “coiled power.”
Bitcoin Sees Explosive Rally as Analysts Eye Move to $8,000
At the time of writing, Bitcoin is trading up just under 5% at its current price of $7,440, up from daily lows of just under $7,000 that were set yesterday.
This movement past $7,200 came about suddenly after the crypto experienced a bout of sideways trading around this level for the past couple of days.
One analyst stated in a recent tweet that a decisive break and hold above this level could lead the cryptocurrency up to $8,000, and this morning’s intense movement seems to suggest that this will be Bitcoin’s next upside target.
“Reclaiming $7,100 and I’ll assume we’ll be testing $7,600-8,000. Might see a drop towards $6,900 as massive pivot. Holding there = aiming for longs. Losing and I’ll be targeting $6,600,” he said while pointing to the below chart.
Image Courtesy of Crypto Michael
BTC Makes Big Push Just in Time: Confirms Technical Pattern’s “Coiled Power”
This latest push higher has come just in time, as one trader was previously noting that bulls were running out of time to confirm a highly bullish technical pennant that it was forming. This breakout confirms this pattern and appears to open the gates for Bitcoin to “explode” higher.
The previous timeline on this move was rather short, as he noted that it had to be made by April 26th in order for it to bolster BTC
“I’ll take the risk & go long to 8k if it looks like we’re about to explode. Looking for a retrace, quick buyback, & 4th attempt at upper trendline (typically when breakouts occur). Hop in around here. Breakout required before April 26th or pennant loses its coiled power,” the analyst noted.
Image Courtesy of Chase_NL
The confirmation of this pattern combined with the bullish reaction to $7,100 does seem to suggest that a movement to the $8,000 region is imminent.
Featured image from Unsplash.