In today’s technical analysis, we’re looking at Bitcoin, which wrapped up the previous week with a clear bullish signal.
Since mid-July, Bitcoin has been moving sideways, forming a pennant pattern marked with blue lines — a classic setup that often ends in a breakout. Toward the end of last week, the price briefly broke to the downside, but this move turned out to be a false breakout, highlighted by the red rectangle on the chart. This fake move lower quickly reversed, with price snapping back into the pattern and continuing upward.
This type of false breakout is often a strong signal in the opposite direction, and that’s exactly what we’re seeing here. The failed bearish move has triggered a solid bullish sentiment.
As long as Bitcoin remains above the pennant, the bias is positive, and buyers stay in control. On the other hand, if price drops back inside the pennant, that would be a negative development and could invalidate the current bullish outlook.