Bitcoin charts continuation pattern with impressive upside target

Weekly Pattern Analysis

Source: www.tradingview.com

Bitcoin has charted a series of higher troughs followed by higher peaks. This puts the cryptocurrency into an uptrend. In April, BTCUSD challenged the psychological $30,000 level but was unable to break through conclusively. It has been in corrective mode since reacting off this key level since then.

However, the correction looks to have charted a falling wedge pattern (converging black trendlines), which is a continuation pattern. I.e., once the pattern completes, price is expected to continue in the direction that led into the correction – in this case, upwards.

The Measured Move

One can use a measured move to assess possible targets once the wedge pattern completes. Here, we have extended the red impulse move into the wedge pattern, from the breakout point. This gives an impressive measured move target of $42,800. This is an astounding 47% higher from current levels.

Measured moves are academic in nature. They may or may not be hit. Rather than set in stone, the measured move connotes a bullish impetus to the current break out.

Insitutional Interest

Bitcoin's wedge breakout coincides with the launch of EDX Markets, a new crypto exchange, which is backed by Wall Street firms including Charles Schwab and Citadel Securities. EDX Markets launched yesterday, 20 June, and is another positive signal from institutions, given that BlackRock, the world's biggest money manager, has filed an application with regulators to create a Bitcoin ETF. There are rumours that Fidelity will follow suit.