Despite experiencing a brief pullback after nearly reaching the $100,000 price level, technical analysis indicates that a bullish pattern has emerged on the Bitcoin price chart.
It is noteworthy that this adjustment has led to the formation of a bullish pennant on the 3-day candlestick chart for Bitcoin. This development could provide the bullish momentum needed for a potential breakout above the $100,000 price threshold. However, the anticipated breakout is not just about exceeding $100,000, but rather pushing the cryptocurrency towards a rally to $145,000.
A bullish pennant appears on the Bitcoin price chart
The price action over the past 24 hours shows that Bitcoin's price has recovered to the $96,000 level after a week of mostly consolidation. In particular, the adjustment caused Bitcoin's price to drop to a low of $91,000 as many traders took profits.
It is noteworthy that this back-and-forth fluctuation in BTC prices has formed a small bullish pennant. The cryptocurrency analyst Trader Tardigrade, known for technical analysis, pointed out this pattern on the social media platform X. In his post, he remarked, 'Small pennant, big target,' while pointing to the pattern on the 3-day candlestick Bitcoin price chart.
The bullish pennant is a continuation pattern that typically appears in a strong uptrend. It starts with significant price volatility (the flagpole), followed by a consolidation phase (the pennant), and then may break out in the same direction as the initial trend.
The appearance of this bullish pennant on the 3-day Bitcoin chart suggests that the cryptocurrency may be gearing up for another rally. However, this pattern indicates that due to the liquidity in the pennant not yet being filled, Bitcoin's price may continue to consolidate for some time. Nevertheless, Trader Tardigrade's analysis emphasizes the long-term implications of this pattern. According to his prediction, once Bitcoin completes its consolidation and breaks out of the pennant, it could soar towards an ambitious price target of $145,000.
The price target of $145,000 has become increasingly common among cryptocurrency analysts. For instance, this price target also appeared in the analysis of cryptocurrency analyst Tony Severino, who suggested that the peak price of Bitcoin for this cycle is around $145,000.
$100,000 price target remains in play
At the time of writing, the BTC price is $96,070, having risen 0.5% in the last 24 hours, but down 3.3% over the past 7 days. The likelihood of Bitcoin's price reaching the $100,000 milestone is currently not a question of if, but when.
Speaking of timing, the BTC price is about to face another catalyst that could ultimately push it above $100,000. Bitcoin will see its largest monthly options expiration since 2024 on Friday, involving a total exposure of $13.6 billion. This expiration event could provide the necessary momentum for bullish traders to drive Bitcoin's price past the $100,000 milestone in the coming week.
