Bitcoin (BTC) price registered a new weekly high close for the second consecutive week after recording a 12% rise over the past seven days. The crypto asset is up 31% for the month as prices continued 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.
Bitcoin “daily pennant” targets $125,000
Bitcoin rallied by 40% between Nov. 4 and Nov. 13 after BTC’s price discovery commenced post $80,000. Since reaching ATH at $93,450, its value has oscillated between the ATH and $87,000.
During that consolidation period, SuperBitcoinBro, an anonymous technical analyst, indicated that BTC had formed a bullish pennant on the daily chart.
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.
Bitcoin daily chart analysis by SuperBitcoinBro. Source: X.com
A positive breakout from the pennant could potentially lead to the next leg up for Bitcoin, measured at $125,000 or 40% from its current price point.
However, it is important to note that the success rate of a bullish pennant is only around 54%, which makes it one of the least reliable patterns.
Additionally, Coosh Alemzadeh, a Bitcoin trend analyst, predicted a similar price target range for Bitcoin, which lies between $130,000 and $145,000 by the end of 2024.
Alemzadeh’s long-term outlook is based on Elliot wave theory, and according to the analyst, Bitcoin is currently at the 5th wave extension, where the “steepest part of this move is in front of us.”
Related: BTC price weekly close nears $90K — 5 Things to know in Bitcoin this week
Coinbase premium indicates uncertainty at $90,000
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, which jumped to its highest level since Q2.
However, since then, the premium index has cooled, indicating that US retail investors are currently slowing down. CryptoQuant’s quick take insight also implied a similar sentiment and mentioned,
“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, CryptoQuant CEO, believed that a retail “FOMO” under the $100,000 limit might lead to the formation of “exit liquidity” for the whales. Yet, the onchain analyst emphasized that these corrections will only mean dips and not the beginning of another bear market.
Bitcoin 1-hour chart. Source: TradingView
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.
A breakout and significant close above $93,421 would signal another price discovery period for BTC, with $100,000 as its immediate target.
Related: BTC price 'issues' include $70K dip despite Bitcoin whale accumulation
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.
