Breaking News
Get Actionable Insights with InvestingPro+: Start 7 Day FREE Trial Register here
Investing Pro 0
Ad-Free Version. Upgrade your Investing.com experience. Save up to 40% More details

Chart Of The Day: Bitcoin Could Be Heading To $90,000

By Investing.com (Pinchas Cohen/Investing.com)CryptocurrencyNov 09, 2021 09:39AM ET
www.investing.com/analysis/chart-of-the-day-bitcoin-could-be-heading-to-90000-200607779
Chart Of The Day: Bitcoin Could Be Heading To $90,000
By Investing.com (Pinchas Cohen/Investing.com)   |  Nov 09, 2021 09:39AM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 

At time of publication, Bitcoin, which hit a new record high on Tuesday by breaking through the $68,000 level, has retreated. Still, the token continues to trade near its benchmark level, maintaining its rally for now, which has extended into a fourth day.

On Monday alone, Bitcoin surged 6.7%. Over the course of the current four-day rally the cryptocurrency is up 11.4%. Analysts of the asset class are crediting the record breaking gains to a supply squeeze amid growing global interest in cryptocurrencies. The market cap of the entire digital asset class was boosted by the move, exceeding the $3 trillion mark for the first time on Monday, raising the total valuation for the entire cryptocurrency market by more than 280% this year alone.

Whether or not the fundamentals justify the current price action, the recent upmove initiated a technical momentum chain reaction that could take Bitcoin toward $90,000. 

BTC/USD Daily
BTC/USD Daily

Yesterday, Bitcoin completed a bullish pattern when the price formed a possible pennant since the Oct. 20 high, the token's previous all-time high.

A pennant is a continuation pattern that tends to develop after a fast, hot run-up of prices.

While we're not crazy about the congestion before the pennant (green oval), considering the preceding 62% breathtaking rally in just three weeks, we're willing to relax the textbook rules regarding the makeup of a pennant. Also, we might consider the pattern an upward sloping H&S top that blew out, which could force investors to reverse shorts into long positions.

The measuring technique is the difference between a failed H&S top, considered bullish, and the pennant.

According to the requirements for a pennant, if the price action follows through, we might expect the preceding $25,000 move to repeat itself. However, if a technician thinks that the pattern is a failed H&S top, they will expect the following advance to repeat the height of the shortest part of the H&S.

Both measures are from the point of breakout, about $63,500.

If it's an H&S, the price target would be +$6,700, measuring from the Oct. 20 peak to the Nov. 6 low. However, if the analyst believes they're seeing a pennant, they'd measure the rally since the Sept. 9 bottom. That would provide the objective of +$25,000 from the $63,500 breakout.

Trading Strategies

Conservative traders should wait for a return move that would retest the support of the pattern.

Moderate traders would wait for the pullback for a better entry if not for confirmation.

Aggressive traders may enter a contrarian position, shorting an expected corrective dip after a record-setting move, but only if they accept the higher risk that comes along with the higher rewards of moving before other traders. A coherent trading plan will separate the traders from the gamblers. Here's an example:

Trade Sample - Contrarian Short Position

  • Entry: $68,000
  • Stop-Loss: $68,500
  • Risk: $500
  • Target: $65,000
  • Reward: $3,000
  • Risk:Reward Ratio: 1:6

Author's Note: The point of this sample is to illustrate the basic requirements of a trading plan. You need to learn to develop one for your needs, including your budget, temperament and timing. Until you do so, feel free to use our samples for educational purposes only. Don't expect to profit from them. You may win with an individual selection, but we guarantee you will lose in the long run if you don't have a customized trading plan.

Chart Of The Day: Bitcoin Could Be Heading To $90,000
 

Related Articles

Craig Thompson
Bitcoin 2022 Forecast By Craig Thompson - Jan 19, 2022 1

In October of last year, Bitcoin was advancing towards $65,000 and in our updates we explained that price was likely to stall and rollover at this area, which was major resistance...

Gregor Horvat
Bitcoin And Ripple Pause Before Sliding By Gregor Horvat - Jan 19, 2022

The crypto market is still slow, and the current intraday decline still looks like a corrective pullback. Be aware of a jump towards the 2.17T – 2.27T area before seeing a bearish...

Chart Of The Day: Bitcoin Could Be Heading To $90,000

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:  

  •            Enrich the conversation, don’t trash it.

  •           Stay focused and on track. Only post material that’s relevant to the topic being discussed. 

  •           Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.

  • Use standard writing style. Include punctuation and upper and lower cases. Comments that are written in all caps and contain excessive use of symbols will be removed.
  • NOTE: Spam and/or promotional messages and comments containing links will be removed. Phone numbers, email addresses, links to personal or business websites, Skype/Telegram/WhatsApp etc. addresses (including links to groups) will also be removed; self-promotional material or business-related solicitations or PR (ie, contact me for signals/advice etc.), and/or any other comment that contains personal contact specifcs or advertising will be removed as well. In addition, any of the above-mentioned violations may result in suspension of your account.
  • Doxxing. We do not allow any sharing of private or personal contact or other information about any individual or organization. This will result in immediate suspension of the commentor and his or her account.
  • Don’t monopolize the conversation. We appreciate passion and conviction, but we also strongly believe in giving everyone a chance to air their point of view. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
Comments (5)
Muhammad Sheiff
Muhammad Sheiff Nov 10, 2021 10:21AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
i don't know anything about this application how can I call and how much can I know about this application.and I need help
Mohd Izhar Muslim
Mohd Izhar Muslim Nov 09, 2021 4:28PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Bitcoin to the best 👍
Head Hxncho
Head Hxncho Nov 09, 2021 12:11PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
BTCUSD to the moon🚀🚀🌑
Felipe Daniel
Felipe Daniel Nov 09, 2021 10:39AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
I have lost faith in this writer after his erroneous short call on gold. I do not like writers that do not take accountability rather blame readers for their wrong calls.
Shane Zhang
Shane Zhang Nov 09, 2021 10:39AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
I agree
Kevin Makau
Kevin Makau Nov 09, 2021 10:39AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
You are responsible for your own money, no financial advice was being given just his opinions and analysis.
Pinchas Cohen
Pinchas Cohen Nov 09, 2021 10:39AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
You are being upset over a single call demonstrating a fundamental lack of understanding regarding trading. I urge you not to trade before you understand how trading works.
Selfmade DC
Selfmade DC Nov 09, 2021 8:04AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Always great articles man been following you for a while now 👍🏽🔥
Loudermilktits Loudermilktits
Loudermilktits Nov 09, 2021 8:04AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Pinchas is one of just a few worth reading here at Investing.com
Pinchas Cohen
Pinchas Cohen Nov 09, 2021 8:04AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.
Continue with Google
or
Sign up with Email