Bitcoin enters ‘bull pennant’ breakout as S&P 500 hits all-time high

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Asus Bitcoin has shown signs that it may be preparing for a substantial price surge.

Bitcoin has formed a bull pennant pattern on its monthly chart, suggesting a potential uptrend continuation, according to analyst Titan of Crypto. This pattern often indicates accumulation before a major price move. Meanwhile, the S&P 500 hit a record 5,700 after the Fed’s first-rate cut in four years, hinting that Bitcoin might follow with a significant rise.

This rally could suggest that Bitcoin may follow suit, potentially seeing a significant price increase in the near future.

The bull pennant pattern is unfolding on Bitcoin’s monthly chart as seen in Titan of Crypto analysis. This pattern, recognized for its bullish continuation signal, began to form in September 2023. It followed a strong price rally that started in the last quarter of 2023 and peaked with Bitcoin reaching a new all-time high in March 2024.

#Bitcoin Bull Pennant Breakout! 💥🚀

A massive Bull Pennant is breaking out to the upside on the monthly timeframe.

This could be the start of a major move! 🐂 pic.twitter.com/boF0uHQNyz

— Titan of Crypto (@Washigorira) September 19, 2024

The current consolidation phase, lasting for about six months, has shown a series of lower highs. These movements have been confined within converging trendlines, creating the distinct pennant shape. This setup suggests that Bitcoin is accumulating energy for its next major price move.

Additionally, pseudonymous trader Crypto Rover identified a falling wedge, which, along with the bull pennant, signifies a bullish trend for Bitcoin, reflecting positive market sentiment.

The breakout from a bull pennant typically indicates a continuation of the prior bullish trend. As noted by Titan of Crypto on September 14, a successful breach above the pennant for Bitcoin could signal the beginning of a rally, potentially targeting a price of $158,000 by May 2025. To achieve this ambitious goal, Bitcoin would need to see an approximate 170% increase from its current price levels over the next six to eight months.

This heightened market activity further underscores the significance of key resistance levels. As reported by crypto and stock investor Jelle, breaking the key resistance level of $65,000 will push Bitcoin higher. However, crypto trader CrediBUll observed that the real test lies at $70,000, as rejection at that level remains a possibility.

A key factor to watch, highlighted by Will Clemente, is the opening of $1 billion in BTC perpetual futures contracts over the last 24 hours. This signals the potential for a sharp and aggressive market reaction in the coming days.

$1 billion in contracts opened on BTC perps alone in the last 24 hours, wouldn’t be surprised if the market did a quick flush and run.

I’m not looking to be that tactical and not touching my positioning, but worth being aware of. pic.twitter.com/iknUFwXFeQ

— Will (@WClementeIII) September 19, 2024