Pennant breakout puts Bitcoin back on track for $14,000

The rising volume and the breakout over a fundamental trend line pushed Bitcoin’s price up again to $14,000.

This weekend, the price of Bitcoin (BTC) seems determined to close the month with a remarkably strong performance, prompting many bullishers to announce a new all-time high above $20,000 in the near future.

Traders attribute these ambitious estimates to the fact that BTC seems to have turned the area between $12,000 and $12,500 into support and, barring any unforeseen price incidents, Bitcoin is well on its way to tracing a fantastic monthly candle.

Further ‚bullish‘ evidence comes from the expiration of options and futures yesterday, when the open interest of futures contracts lost $450 million according to estimates on October 28.

According to Cointelegraph collaborator Marcel Pechman:

„The most recent option expiration on BTC and Ether brought no surprises. Deribit is again at 137,000 BTC options compared to 150,000 yesterday. Meanwhile, the October 30 futures expiration on CME subtracted $215 million from open interest, but it seems to have had little or no impact on the price. Once again, the phenomenon of BTC falling before or after CME futures expires no longer exists. This confirms the bullish outlook for the recent movement, despite negative news from Asian exchanges and Tether“.

Currently, BTC is at around $13,800, having broken upwards the narrower and narrower range marked by the price in the 4-hour chart.

In the last 24 hours, Bitcoin Supreme has remained above the moving average at 20 days, and after a resistance test at $13,620 it has managed to exceed the upper limit of the pennant. Subsequently, the asset briefly visited levels above $14,000, marking a new high for 2020.

Before the breakout, as trading volume continued to increase, the MACD crossed the signal line (orange) upwards, suggesting more momentum. The RSI was also above the middle line, around 60, when BTC finally managed to break the $13,660 resistance.

In case Bitcoin should lose the current momentum and plot a correction below $13,100, the first support is at $12,800. If this level doesn’t hold up, it could open the door to new tests of $12,000 and $11,500.

Bitcoin’s current price action is encouraging and the digital asset is clearly in a strong upward trend with considerable growth potential.

The same cannot be said for the altcoins, which have been overwhelmed during the week and have suffered severe losses. At the time of writing, the price of Ether (ETH) fell by 5.8%, without being able to claim the $400 as support. Chainlink (LINK) lost 6.74% and Binance Coin (BNB) 6.10%.

According to CoinMarketCap, the total cryptocurrency market cap is now at $404 billion and Bitcoin dominance is 63.6%.