Technical Analysis Demonstrates Bullish Outlook Across All Time Periods
For the second consecutive week, Bitcoin’s price has registered a new weekly high close, following a 12% rise over the past seven days. The crypto asset is up 31% for the month, with prices continuing to consolidate near its all-time high (ATH) range.
Bitcoin 1-Week Chart
Source: TradingView
With technical analysis demonstrating a bullish outlook across all time periods, one analyst believes another 40% rise might unfold over the next few days. This is based on the formation of a bullish pennant on the daily chart, which could potentially lead to the next leg up for Bitcoin.
Bullish Pennant Formation
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. The formation of this pattern indicates a potential breakout from the current range, with the target measured at $125,000 or 40% from its current price point.
However, it’s essential to note that the success rate of a bullish pennant is only around 54%, making it one of the least reliable patterns.
Coosh Alemzadeh’s Long-Term Outlook
Coosh Alemzadeh, a Bitcoin trend analyst, predicts a similar price target range for Bitcoin, which lies between $130,000 and $145,000 by the end of 2024. This is based on Elliot wave theory, where Bitcoin is currently at the 5th wave extension, with the ‘steepest part of this move in front of us.’
Related Reading:
- BTC Price Weekly Close Nears $90K — 5 Things to Know in Bitcoin This Week
- Coinbase Premium Indicates Uncertainty at $90,000
Coinbase Premium Index
The Coinbase premium index has cooled since reaching its highest level since Q2. This indicates that US retail investors are currently slowing down, which aligns with the fact that Bitcoin transaction volume under $100,000 reached a new three-year high.
Ki-Young Ju’s Insights
Ki-Young Ju, CryptoQuant’s CEO, believes that retail FOMO under the $100,000 limit might lead to the formation of ‘exit liquidity’ for the whales. However, this correction is expected to be short-lived and will not signal the beginning of another bear market.
Technical Analysis on Lower Time Frame
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, oscillating right above the psychological level of $90,000.
A breakout and significant close above $93,421 would signal another price discovery period for BTC, with $100,000 as its immediate target.
Conclusion
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.
In conclusion, the technical analysis suggests that Bitcoin’s price is poised to break out of its current range, with a potential 40% rise unfolding over the next few days. However, it’s essential to note that the success rate of a bullish pennant is only around 54%, making it one of the least reliable patterns.
The Coinbase premium index has cooled since reaching its highest level since Q2, indicating that US retail investors are currently slowing down. Additionally, Ki-Young Ju’s insights suggest that retail FOMO under the $100,000 limit might lead to the formation of ‘exit liquidity’ for the whales.
Ultimately, this article is not intended to provide investment advice or recommendations but rather to offer a comprehensive analysis of the current market situation.
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.