- BTCUSD surged above 35,000 to its highest since May 2022
- Has been flat since then, forming a pennant pattern
- Momentum indicators remain within overbought territories
BTCUSD (Bitcoin) has experienced a massive rally driven by speculation around the approval of spot-Bitcoin ETFs, which sent the price to a fresh 18-month high of 35,187. However, the leading cryptocurrency has been trading sideways in the past seven days, with the formation of a pennant hinting at an impending breakout.
Given that the short-term oscillators are suggesting an overstretched advance, the price could reverse lower towards the previous resistance of 31,827, which also held strong in June 2022. A violation of that zone could shift the spotlight to the 30,000 psychological mark. Failing to halt there, the king of cryptos could descend towards the 28,100 hurdle.
On the flipside, if the pennant pattern breaks to the upside, the bulls could aim for the 18-month high of 35,187. Even higher, the inside swing low of $37,500 registered in May 2022 could prove to be a tough obstacle for the price to overcome. Further upside attempts may then cease around 40,500, which acted as both support and resistance in the first half of 2022.
Overall, BTCUSD has been trading within a range in the past week, but its technical setup is warning of a potential spike. Can the recent completion of a golden cross between 50- and 200-day simple moving averages (SMAs) propel the price deeper into overbought territories?