Welcome to Extreme Investor Network, where we provide you with expert insights and analysis on the stock market, trading, and all things Wall Street. Today, we will discuss the current analysis of Centerline Support Tested Tuesday.
In technical analysis, a horizontal dashed line is often used to mark the center of a pennant pattern, where the boundaries of the pattern intersect. This centerline helps define the consolidation pattern, and in the case of today’s market, it was tested as support with a low price. Keep an eye on the level at 68.671, as a daily close below this point could signal a potential correction and a failure of the pennant breakout.
To show signs of strength, Bitcoin needs to rally above today’s high and close above the 71,792 minor swing high at the top of the pennant. A potential target of 92,054 is indicated when calculating the measuring objective from the pattern. The first higher price target is around 77,660, including the 161.8% extended target of a large rising ABCD pattern. A bullish breakout above yesterday’s high of 72,777 could pave the way for a continuation higher.
On the flip side, a drop below today’s low of 68,200 increases the likelihood of a drop to the lower boundary line of the pennant and potentially even further. Potential support levels include the 50-Day MA at 65,198 and the recent minor swing low at 64,500. A decisive decline below 64,500 would indicate a failure of the bullish pennant, leading to lower prices being tested as support.
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