Bitcoin Price In Classic ‘Bull Pennant’ Breakout As BTC Whales Continue Buying Spree – News Couple
CRYPTO NEWS

Bitcoin Price In Classic ‘Bull Pennant’ Breakout As BTC Whales Continue Buying Spree


Bitcoin (BTC) has the potential to rise towards $75,000 by the end of this year as it breaks the classic bullish pattern and picks up additional bullish signals from the recent accumulation spree of rich investors.

Bitcoin Bull Pennant Breakout in Play

BTC has surged more than 6% in the past 24 hours, reaching a three-week high of $66,500. In doing so, the cryptocurrency broke out of a consolidation range consisting of two diverging trendlines, a setup reminiscent of Bull Pennant.

Bull Pennants are bullish continuation patterns that appear when the instrument consolidates in a triangle-like price range after a strong move up (called Flagpole). It usually ends up breaking out of the range to the upside, eyeing a profit target with a length equal to the size of the flagpole.

Bitcoin ticks almost all the boxes when it comes to confirming the Bull Pennant hack. As a result, the possibility of its bullish continuation has increased, with the profit target rising to the high of the flagpole, which is above $12,300, as shown in the chart below.

BTC/USD daily price chart featuring Bull Pennant setup. Source: TradingView

The bull setup puts BTC price on its way towards $75,000, after adding the Flagpole rally to the breakout point around $63,300.

Whales Entering Bitcoin Accumulation Spree

Bitcoin bullish setting received additional confirmation from Pointer to string by Santiment which tracks the distribution/accumulation activities of wallets with balances between 10,000 BTC and 100,000 BTC.

The scale highlighted that so-called “Bitcoin whales” are quick to buy them.

Specifically, these entities have amassed 43,000 BTC (worth about $2.82 billion) in the past five days and about 92,000 BTC (over $6 billion) in the last 25 days, just as the price soared to a record high near $67,000, correcting to Below 60 thousand dollars, and rose again above 66000 dollars.

Bitcoin whale accumulation/distribution chart. Source: Santiment

The whale-led buying between the $60,000-67,000 region confirmed their readiness for the times ahead, that is, they expected Bitcoin to close beyond the previous record high.

Related: Bitcoin Whale Indicator Discovers Multi-Month Accumulation Trend With $67K BTC Retest

Additionally, on-chain analyst Willy Woo notes that bitcoin has been moving exchanges into cold storage in recent weeks. At the same time, stable USDC deposits pegged to the dollar rose in the same period, confirming the classified buying pattern.

Net spot BTC exchange flows. Source: Willy Wu

“The price had previously overheated, which called for a time of consolidation, and since then we have seen significant buying from investors during that time. [the] Woo wrote in a note to customers,” adding:

“It was a healthy consolidation. Meanwhile, significant whale activity has been observed which indicates that the next BTC movement in the price may come soon.”

Bitcoin is up about 50% so in the fourth quarter, it’s only 2% below its all-time high of $67,000.

The opinions and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph.com. Every investment and trading move involves risks, you should do your own research when making a decision.