Ascending Channel

An ascending channel in crypto is a bullish chart pattern characterized by two parallel trendlines sloping upwards. The lower trendline connects the swing lows, indicating a level of support, while the upper trendline connects the swing highs, acting as a resistance level. The price tends to oscillate between these two trendlines, forming higher highs and higher lows.

Example:

Bitcoin's price has been trading within an ascending channel since mid-2023, with the lower trendline providing support around $45,000 and the upper trendline acting as resistance around $55,000. Traders often look for opportunities to buy near the lower trendline and sell near the upper trendline, aiming to profit from the price movements within the channel.

Case:

Ethereum exhibited an ascending channel pattern throughout the first quarter of 2024. Despite occasional fluctuations, the price consistently respected the channel's boundaries. Traders who recognized this pattern could have capitalized on the predictable price movements by implementing strategies such as buying at the lower trendline and selling at the upper trendline.