Bitcoin Continuation Patterns Guide

When these continuation chart patterns are shaped on the BTCUSD chart they confirm that the ruling Bitcoin price trend is going to continue moving in same direction.

Bitcoin traders use continuation chart patterns to spot the halfway points of a trend. These patterns show up right at the middle of a price move.

There are 4 types of continuation chart patterns:

Rising triangle chart pattern
Falling triangle chart pattern
Bull flag/pennant chart pattern
Bear flag/pennant chart pattern

Rising Triangle Continuation Pattern

The ascending triangle setup is formed in an up-trend and it shows that the upwards direction of the price is going to continue in. It shows that there is a resistance area that the buyers(bulls) keep pushing every time moving it higher, and once this resistance level breaks, the market will continue heading upwards.

Overhead resistance temporarily stops the Bitcoin market from moving higher, while the ascending trendline beneath the setup signals that the buyers(bulls) are still present. An up side penetration of the upper trend line is a technical buy signal for a market breaking out from an ascending triangle chart pattern.

This ascending triangle continuation configuration is observed during an uptrend in Bitcoin pricing: the triangle develops as a temporary consolidation phase within the upward movement, signaling that a continuation of the upward price trajectory is forthcoming.

Bitcoin Continuation Pattern Example: The Rising Triangle Setup in BTCUSD Charts

Rising Triangle Continuation Pattern - Bitcoin Trading

The market built an ascending triangle in its uptrend. This led to more gains. Buy when price breaks above the top line and keeps rising.

Falling Triangle Pattern

The descending triangle pattern forms in a downtrend. It signals the market will keep falling. Sellers push against a support level each time. They lower it bit by bit. When that support breaks, prices drop more.

The support area briefly keeps the bitcoin market from falling further, but the downward sloping line above the pattern shows sellers are still active. When the price goes below the lower line, it's a technical sell signal because the market is breaking down from a descending triangle pattern, suggesting more selling will happen.

When a descending triangle materializes amidst a prevailing Bitcoin price decline, it signifies a consolidation period within that downtrend, projecting that further downward price action is imminent.

Falling Triangle Pattern on Bitcoin - BTCUSD Continuation Setups

Falling Triangle Continuation Pattern - Bitcoin Trading

The Bitcoin market formed a descending triangle during its downtrend which led to further selling and a continuation of the downward trend. The technical sell trading signal is when the price breaks lower horizontal sloping line as the selling resumes to push the market lower.

Bull Pennant/Flag

This ongoing Bull Flag pattern makes something that looks like a rectangle shape. The rectangle is made by 2 lines that are parallel and act as support and resistance until the price breaks out. Usually, the flag will not be perfectly flat: it will be formed sloping up or down.

The bull flag appears in an uptrend for bitcoin prices. This pattern shows a brief pullback with tight price moves and a slight downward slope. Buy when price breaks above the flag's top line. The flag's highs and lows form parallel lines, like a narrow channel.

The bull flag pennant pattern occurs at halfway point of a bullish upward trend & after a price breakout - a similar move equal to the height of the flag pole is expected.

Bull Flag Pennant Continuation Pattern - Bitcoin Trading

The bull pennant continuation pattern shown above represented a temporary consolidation phase where the market was accumulating the necessary impetus for an upward breakout. The continuation trading signal was confirmed upon the upper boundary being breached in an upward direction.

Bear Flag/Pennant Pattern

This bear flag pattern appears when the price of Bitcoin is generally going down. The bear flag pattern is a chart pattern that shows the price pausing slightly in a downward trend, with the price moving up a little within a narrow range. The time to sell is when the price goes below the lower line of the bear flag pattern. The highs and lows of the pennant part can be connected with small, parallel lines, making it look like a small channel.

Bear Flag Pennant Pattern - Bitcoin Trading

The bear flag pattern was a brief pause before more drops. The signal confirmed when price broke below the lower line.

Learn More Tutorials:

Trade Bitcoin Trading

Bitcoin Continuation Patterns Guide

Rising Triangle Continuation Pattern

Falling Triangle Pattern

Bull Pennant/Flag

Bear Flag/Pennant Pattern