Bitcoin Volatility Incoming as BTC Price Forms This Key Technical Pattern – $38K or $48K Next? Bitcoin (BTC) chart analysis suggests the price has formed a key short-term technical pattern that could be a harbinger of extreme volatility ahead, with quick dump to
$38,000 or pump towards
$48,000 possible depending on how the pattern is broken.
Amid its consolidating back from the year-to-date highs near
$45,000 it hit earlier this month, the BTC price has formed a pennant structure, characterized by the price being gradually squeezed by higher lows and
lower highs. These patterns often form in periods of market consolidation
(like we have seen over the course of the past week) and usually proceed a meaningful breakout to the upside of downside.
If BTC was to break its pennant structure to the downside, which would also mark a break below its 21DMA, a
quick test of the $40,000 level would be very likely due to technical selling.
