Bitcoin’s price has registered a new weekly high close for the second consecutive week, with a 12% rise over the past seven days. This surge brings the crypto asset up 31% for the month, with prices consolidating near its all-time high (ATH) range.
Technical Analysis Points to Bullish Outlook
With technical analysis demonstrating a bullish outlook across all time periods, one analyst believes another 40% rise might unfold over the next few days. The "daily pennant" pattern on the Bitcoin chart suggests that the crypto asset is poised for continued growth.
What is a Bullish Pennant?
A bullish pennant is a continuation pattern that occurs after a significant rise, followed by a consolidation period at the higher price end of the range. This pattern is characterized by a triangle formed by two converging trendlines, with the price breaking out from the top of the triangle.
Potential Price Target: $125,000
The success rate of a bullish pennant is only around 54%, making it one of the least reliable patterns. However, if the pattern plays out as expected, Bitcoin’s price could reach $125,000 or 40% from its current price point.
Long-term Outlook: $130,000 – $145,000
Coosh Alemzadeh, a Bitcoin trend analyst, predicts a similar price target range for Bitcoin by the end of 2024. According to Alemzadeh’s long-term outlook based on Elliot wave theory, Bitcoin is currently at the 5th wave extension, where "the steepest part of this move is in front of us."
Coinbase Premium Indicates Uncertainty
After Bitcoin entered price discovery above $73,880, the move between $75,000 and $90,000 was strongly supported by a spike in Coinbase premium. However, since then, the premium index has cooled, indicating that US retail investors are currently slowing down.
Retail FOMO and Exit Liquidity
CryptoQuant’s quick take insight also implied a similar sentiment, mentioning: "It seems like Coinbase is taking a breath to decide its next move. It would be wise for conservative traders to enter after the Coinbase Premium regains its momentum." This aligns with the fact that Bitcoin transaction volume under $100,000 reached a new three-year high.
Ki-Young Ju’s Analysis
Ki-Young Ju, CryptoQuant’s CEO, believed that retail FOMO under the $100,000 limit might lead to the formation of ‘exit liquidity’ for the whales. However, the onchain analyst emphasized that these corrections will only mean dips and not the beginning of another bear market.
Lower Time Frame Analysis
On the lower time frame, Bitcoin has repeatedly bounced from an ascending trendline and is currently facilitating another retest. The price has also received support from the 50-day and 100-day EMA levels, and it is currently oscillating right above the psychological level of $90,000.
Breakout and Price Discovery
A breakout and significant close above $93,421 would signal another price discovery period for BTC, with $100,000 as its immediate target.
Disclaimer
This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.
Bitcoin Price Chart Analysis
As can be seen from the chart below, the price of Bitcoin has been consolidating near its all-time high (ATH) range, with a 12% rise over the past seven days. This brings the crypto asset up 31% for the month.
**Bitcoin 1-week chart**
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Analysts’ Predictions
- Coosh Alemzadeh: $130,000 – $145,000 by the end of 2024
- SuperBitcoinBro: $125,000 or 40% from its current price point
