• Bitcoin’s YTD performance has been strong, rising over 80% since the start of 2023.
• Investors were betting on a pennant formation in March to propel the market further.
• The 28k level invalidates the bullish formation and puts Bitcoin’s YTD performance in danger.
Bitcoin’s YTD Performance
Bitcoin price has bounced from the 2022 lows right from the start of 2023 and rallied more than 80%. This impressive year-to-date (YTD) performance is now in danger should the market not be strong enough to push even higher.
The Pennant Formation
Investors bought Bitcoin in March and in the first half of April, hoping that Bitcoin price would reach the measured move of a pennant formation. A pennant is a bullish continuation pattern made up of a consolidation triangle before which the market must rally. If successful, this would signal “more of the same” i.e., more upside as it allows traders to incorporate time element into their analysis for an advantage.
The Invalidation Level
For a successful validation of this pattern, it needs to reach its measured move within about the same time it took for it to form; otherwise, it will be invalidated if prices drop below 28k area – putting Bitcoin’s YTD performance at risk.
Time is Ticking
Time is ticking for Bitcoin’s YTD performance to remain intact as failure to hold above 30k brings 28k invalidation level into focus and threatens its impressive uptrend so far this year.
Conclusion
In conclusion, investors need to keep an eye out on whether or not Bitcoin can maintain its current gains or if 28k will become an obstacle for further progress; only then will we know if Bitcoin can sustain its current YTD performance or take a step back due to lack of strength from buyers
