Bullish chart patterns Archives

Next Stop: Bitcoin’s “Parabolic Upside”

Crypto analyst and trader Rekt Capital considers Bitcoin (BTC) is currently awaiting a period of consolidation. In an X post, the trader highlighted that, during the previous “Halvings,” BTC saw “Re-Accumulation Ranges.”

The analyst shared his chart for Bitcoin phases during the “Halving,” which he has previously used to explain BTC was at the “Last Pre-Halving Retrace” before April 19.

At the time, the analyst pointed out that the re-accumulation phase was next. Bitcoin went through one during the previous “Halving,” as seen in the chart.

The re-accumulation consisted of two consolidation periods followed by the “Post-Halving Parabolic Upside,” which saw BTC reach last cycle’s all-time high (ATH) of $69,000.

Rekt Capital highlighted that, during this cycle, the flagship cryptocurrency has already experienced five re-accumulation ranges. Similarly to the last cycle, the latest re-accumulation phase seems to have started during the “Pre-Halving Rally” phase. Per the analyst, this will be followed by the “Parabolic Upside” if history repeats itself.

Analyst Mikybull seems to share a similar view to Rekt Capital’s, as he highlights that Bitcoin’s “parabolic rally is loading.” The re-accumulation breakout is set to be “explosive,” and “not many are prepared for this,” he added.

The analyst explained that “the RSI on a macro scale is at the same level as it was in 2017, which was followed by a huge rally to cycle top.” Based on this, he believes the current consolidation comes from institutions preparing “for a huge rally to cycle top.”

Analyst Sets Crucial Level For Bitcoin’s Breakout

A day before Bitcoin’s “Halving,” the cryptocurrency faced a correction that shredded 7% of its price in a few hours. BTC went from hovering between the $64,000-$63,000 price range to trading below the $60,000 support zone.

Since then, the largest cryptocurrency by market capitalization appears to have steadily recovered from the drop. Over the weekend, Bitcoin regained the $65,000 support level before testing the $66,000 one, which it reclaimed on Monday.

Over the last few days, BTC has hovered between $66,000 and $67,000. However, it has not been able to successfully test the resistance level set at the $67,000 price range.

According to the crypto analyst Bluntz, Bitcoin’s most recent performance suggests that the price will continue to move sideways between the $66,000 and the $67,000 range.

However, he also considers that BTC is “gagging for a breakout soon,” as the chart displays a bullish pennant pattern forming. Per the analyst, “once we clear 67k,” the whole market will fly above the latest ATH.

As of this writing, Bitcoin is trading at $66,665, a 7.5% increase from a week ago and a 66.22% in the last three months.

Trading crypto in the bear market is one of the most difficult times for most traders, including advanced traders, but as the saying goes, the bear market produces the best traders, and millionaires are born. Trading without the proper skills and implementing your strategy (Bullish chart patterns) is akin to exposing yourself to risk, which could cost you your life, but in this case, your trading portfolio.

Having the right mindset, patience, and trading strategies like chart patterns, indicators, and market structures gives you an advantage over large investors and institutions. Most traders and investors seek strategies with the highest profitability and results to maximize their earning potential. When most technical analysis strategies are used correctly, they produce enormous success. Let’s look at how you can use three bullish chart patterns to increase your chances of beating the market and making consistent profits. We’ll also look at how to use these bullish chart patterns as a trading strategy.

Falling Wedge As A Bullish Chart Pattern
MKR Price Breaks Out Of A Falling Wedge | Source: MKRUSDT On Tradingview.com

The falling wedge is a trend reversal pattern made up of two converging lines, the upper and lower converging line. This chart pattern sometimes occurs in an uptrend indicating a slight consolidation of an uptrend before the price continues in the direction of the uptrend.

The falling wedge pattern is not as common as other patterns. Still, when identified, it is a good strategy for traders to depend on when opening a long position on a successful breakout. How to identify the falling wedge pattern;

This is followed by a price action that temporarily trades in a downtrend forming swing highs and lows (the lower highs and lower lows);
They are formed by two trend lines (the upper and lower) that are converging;
There is a decrease in volume as the channel progresses, with a breakout from the channel with strong volume by the buyers shifting the trend from a downtrend to an uptrend.

Ascending Triangle As A Bullish Chart Pattern
BNB Price Breaks Out Of An Ascending Triangle | Source: BNBUSDT On Tradingview.com

An ascending triangle is a bullish continuation pattern consisting of a rising lower trendline and a flat upper trendline acting as a support. This pattern tells the trader that the buyers are more aggressive in their orders than the sellers, with the formation of higher lows in the triangle followed by a potential breakout from this channel in the direction of the trend.

A breakout and close in the direction of the trend would signal a potential buy for the trader, considering how successful this strategy can be. How to identify this pattern;

This pattern occurs in an ascending trend, so traders should look for a price rise.
The market enters a consolidation phase.
A rising lower trendline appears, indicating a swing high.
An upper trendline acts as a support for the price.
Trend continuation with a potential breakout of the upper trendline.

Bullish Rectangle

The bullish rectangle chart pattern occurs during an uptrend and indicates that the current trend will continue. The pattern is relatively easier to recognize than other patterns and provides a reliable signal to join a market trend. How to identify this pattern;