Bitcoin (BTC) appears to be ready for a rally of $100,000 as the price breaks the classic bullish structure.
This setup, called Bullish Pennant, is a period of price consolidation with converging trendlines that formed after a strong uptrend. This eventually causes the price to break in the direction of the previous trend to a level that is usually well above the size of the original large move.
On the weekly charts of Bitcoin, the cryptocurrency appears to be heading towards a similar consolidation pattern, with the price fluctuating within a triangle structure after a strong bullish move (Flagpole).
BTC/USD weekly price chart with Bull Pennant setup. Source: TradingView.com
Bitcoin broke above the upper trend line in the structure last week, rising 13.5%, and volume increased. As a result, the cryptocurrency outbreak indicated that the potential upside trend is equal to the magnitude of the previous trend (around $50,000).
Thus the target was measured from the breaking point (~$48,200), which is the target for the bullish pennant above $50,000, i.e. close to $100,000.
The technical setup assumed that Bitcoin would be worth $100,000, not more after many analysts predicted a cryptocurrency with the same six-digit valuation.
A team of researchers from Standard Chartered, led by global head of currency research in emerging markets Jeffrey Kendrick, expects Bitcoin to reach $100,000 by the beginning of next year. They cited the ability of bitcoin to become the “mainstream peer-to-peer payment method for non-bankers” behind their optimistic view.
David Jokstein, founder of Gokhshtein Media and PAC Global, also envisioned bitcoin to exceed $100,000 by the end of 2021. The leader based his optimistic forecast on the amount of cash available in the market, which he said led Wall Street players to buy bitcoins.
“Not everyone will tell you publicly that they are buying bitcoin, but they are,” Gokstein told Business Insider.
There is a lot of money in the market. a lot of money. Institutions did not come here to play in five minutes. ”
His comments came after investment firm George Soros announced at a Bloomberg event that it owns bitcoin, leading to the cryptocurrency’s surge. This was quickly followed by the latest report from JPMorgan & Chase which shows that institutional investors prefer bitcoin to gold as a hedge against inflation.
In a previous study published in May, the banking giant predicted that Bitcoin would reach $140,000 in the long term.
Maintains the mood
Indicators in the network indicated an increase in sentiment among bitcoin traders.
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In particular, Bitcoin shares across all crypto exchanges recently fell to their lowest level in a year, according to data provided by the analysis firm CryptoQuant. The drop showed the intention of traders to keep bitcoins closer than exchanging them for other digital/digital assets.
BTC is held on all exchanges. Source: TradingView.com
Thus, a decrease in bitcoin balances on exchanges is usually accompanied by an increase in the price of bitcoins.