After pointing out this morning a potentially bearish pattern, a bullish one manifested itself later.  Instead of breaking lower, Bitcoin prices hung out all day between $11,000 and $12,000.

Just now a break above the top of a bullish pennant occurred on heavier volume.  Here’s a 15 minute chart showing the break:

The target for the pennant is expected that it rises the distance of the staff.  In this case almost exactly $3,000.  It broke at $12,000, so the target is right at the $15,000 mark.  That would place prices back above the $13,800 line that we’ve crossed so many times, and it would also place them just at the large down slopping line that marks the top of the very large Pennant/Descending wedge I pointed out earlier.

Here’s another view of the big picture chart:

I would not expect prices to penetrate that line unless momentum is way higher than it has been.  Still, a nice looking break higher, and if that target is reached it will be a sizable move in the right direction.  If you’re a trader, this is exactly the type of move you want to catch on the break.

Interesting that this break higher comes within minutes of government failing to pass a continuing spending bill, thus effectively shutting the government down.  Hmmm.  Faith in BTC, but losing faith in .gov and the central banker dollar.

Best,

Nate

Categories: Uncategorized