Welcome to Extreme Investor Network, where we provide unique insights and analysis on the stock market, trading, and Wall Street trends. Today, we are diving into the latest developments in Bitcoin trading, focusing on key technical indicators and potential price movements.
**Bitcoin Stopped Ascent at 300% Retracement of Previous Correction**
On the Bitcoin chart, there is a blue horizontal Fibonacci line with a number 3 near the record high, representing a 300% retracement of the bearish correction that began from the July 2023 swing high. This mathematical relationship between the current high and a prior downswing signals an area of interest where selling or buying pressure may intensify.
**Bull Pennant Breakout Follow Through Remains Likely**
The bull pennant pattern on the Bitcoin chart is hinting at a potential breakout, indicating a bullish move. The purple arrows on the chart suggest a higher target of 92,180, with a 200% retracement level at 86,906. Additionally, a large rising ABCD pattern with the CD leg extended by 161.8% of the AB leg points to a significant target above the March peak.
Monitoring the relative strength index (RSI) is also crucial, as it shows a downtrend line acting as resistance for the current decline. A break above this trendline would confirm bullish momentum, with the RSI currently testing this level.
**Drop Below 67,463 is Bearish**
In case of a failure in the pennant breakout, a drop below Wednesday’s low of 67,463 would indicate potential weakness in the market. This would suggest that the breakout is not functioning correctly and could lead to further downside momentum. Confirming this weakness would be a drop below the lower boundary line on the chart.
Stay tuned to Extreme Investor Network for more updates on the stock market, trading strategies, and detailed analysis of market trends. For a comprehensive look at today’s economic events, be sure to check out our economic calendar for valuable insights into market movements. Happy trading!
