Bitcoin futures caught in another compression triangle

BTC futures are once again trading within the compacting range of yet another compression triangle. On a daily candlestick chart of Bitcoin futures in the CME continuous contracts (BTC #F) it is drawn out as such. Starting a line from the opening price on April 29 then connecting it to the low hit on May 26 and extending it will give you the bottom support line. The top line is drawn from the highs of May 8 to the highs of May 29 and extending this line to the right as well.

One of the first things you will notice is that there has been three distinct waves that took pricing right from the bottom edge of the pennant formation to the its top. The moves upward have been slow and steady while the moves down have been fast and harsh. Studying it further you may notice that if continues to follow the rate of contraction then we could expect one more trip to the patterns bottom support line before breaking out, which will likely but not always break to the prevalent direction before entering the pennant, which in this case would be to the upside.

 So we are forecasting for BTC pricing to touch upon roughly $9,000 before breaking out of the compression triangle at approximately $9,500 by the beginning of next week. Traders wanting to benefit from this forecast more will follow on it this week but basically we want to buy it upon pricing hitting the bottom trend line (today the bottom line is at $8,800). More conservative traders can wait until just before the break above the upper trend line in either case one would place protective stops at the breakout point. This is just one plausible outcome and anything can happen but this is surely the most likely.