Bitcoin’s pennant-like pattern targets $125,000 as BTC approaches its all-time high
Introduction
Bitcoin has maintained its upward trajectory, recording a new weekly high and a significant rise over the past week. The cryptocurrency has gained momentum as it approaches its all-time high (ATH) of $93,450, with consolidation near this level observed during the current period.
Weekly Chart Analysis
The Bitcoin 1-week chart shows sustained price movement towards higher highs. Over the past seven days, Bitcoin experienced a rise of 12%, contributing to its monthly growth rate of 31%. This upward trend is expected to continue as market participants remain optimistic about the asset’s trajectory.
Bullish Pennant Pattern
A Bitcoin analyst has pointed to a ‘bullish pennart’ pattern on the daily chart, suggesting potential upside potential. A bullish pennart occurs after a significant rise followed by consolidation near the ATH. The analyst predicts an increase of $125,000 from its current price point, though acknowledges that this pattern’s success rate is approximately 54%, making it one of the least reliable patterns in technical analysis.
Long-Term Outlook
A Bitcoin long-term analyst, Coosh Alemzadeh, has provided a price target prediction for 2024. Based on Elliot wave theory, he expects Bitcoin to reach between $130,000 and $145,000 by the end of the year. According to Alemzadeh, Bitcoin is currently in the fifth wave extension, with the steepest part of this move expected to occur soon.
Market Sentiment and Recent Price Movements
The price action since Bitcoin entered price discovery above $73,880 has been supported by increased Coinbase premium. This surge in premium indicates heightened retail investor sentiment among U.S. traders, who have cooled their demand as prices approached the $90,000 mark.
Whale Activity and On-Chain Data
Ki-Young Ju, CEO of CryptoQuant, noted that retail FOMO under a $100,000 price cap may be driving corrections in the market. However, on-chain analytics suggest these corrections are merely dips and not indicative of an impending bear market.
Hourly Chart Analysis
The Bitcoin 1-hour chart reflects ongoing bullish momentum. The asset has bounced off an ascending trendline multiple times and is currently facilitating another retest towards its all-time high. Key support levels include the 50-day and 100-day simple moving averages (SMA), with the price oscillating near these levels.
Key Price Targets
A breakout above $93,421 could signal a new leg of price discovery for Bitcoin, with $100,000 as an immediate target. This would follow recent price action where Bitcoin has consistently bounced off this level during consolidation periods.
Conclusion
Bitcoin’s continued upward trajectory is supported by strong market sentiment and key technical indicators. While the bullish pennart pattern carries some uncertainty due to its low success rate, the broader momentum suggests that Bitcoin may well reach its projected targets in 2024.
In summary, Bitcoin remains a compelling investment option for those who believe in its long-term growth potential. The asset’s resilience in 2023 and its strong fundamentals position it well for continued upward movement into 2024.
