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

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Bitcoin has formed a bull pennant pattern on its monthly chart, suggesting a potential continuation of the uptrend, conformable to Crypto analyst Titan. This pattern often indicates accumulation before a major price move. Meanwhile, the S&P 500 hit a record high of 5,700 after the Fed’s four-year key rate cut, suggesting Bitcoin could follow with a significant rally.

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

The bull pennant pattern unfolds 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 was followed by a strong price rally that began in the last quarter of 2023 and peaked with Bitcoin reaching a new all-time high in March 2024 .

#Bitcoin Bull Pennant Eruption! 💥🚀

A massive bull pennant is rising on the monthly time frame.

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

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

The current consolidation phase, which lasts about six months, has seen a series of lower highs. These movements were confined into converging trend lines, creating the distinctive pennant shape. This setup suggests that Bitcoin is building up energy for its next major price move.

In addition, the pseudonymous trader Crypto Rover identified a falling wedgewhich, together with the bull pennant, signifies a bullish trend for Bitcoin, reflecting positive market sentiment.

The breakout from a bull pennant usually indicates a continuation of the previous uptrend. As mentioned by Titan of Crypto on September 14th, a successful breakout above the pennant for Bitcoin could signal the start of a rally, potentially targeting a price of $158,000 by May 2025. To achieve this ambitious goal, Bitcoin would need to see a rise of about 170% from current price levels over the next six to eight months.

This heightened market activity further underscores the importance of key resistance levels. As reported by crypto and equity investor Jelle, a break above the key $65,000 resistance level will push Bitcoin higher. However, the crypto trader CrediBUll noticed that the real test is 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 in the last 24 hours. This signals the potential for a sharp and aggressive market reaction in the coming days.

$1 billion in open contracts for BTC criminals alone in the last 24 hours, wouldn’t be surprised if the market did a quick cleanup and a quick cleanup.

I’m not looking to be so tactical and not touch my positioning, but it’s worth being aware of. pic.twitter.com/iknUFwXFeQ

— Will (@WClementeIII) September 19, 2024

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