Analyst Ali has suggested that Bitcoin (BTC USD) may be forming a bull pennant rather than the widely discussed head-and-shoulders pattern.
This analysis presents an alternative perspective on Bitcoin’s price trajectory. Ali predicts that the cryptocurrency could target $140,000 if the bullish pattern materializes.
The bull pennant, which typically follows a sharp upward price movement, indicates a potential continuation of the current trend.
Ali’s observation challenges the bearish outlook often associated with a head-and-shoulders pattern, which many analysts believe could signal a reversal.
The debate over Bitcoin’s future movement is intensifying as the cryptocurrency trades near key technical levels.
Bitcoin’s current price action, alongside its consolidation, could play a critical role in determining the next breakout direction.
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Bull Pennant Suggests Potential Target of $140,000 For BTC USD
According to Ali, Bitcoin is likely to be trading within a triangle formation that is usually a bullish pennant.
This formation, combined with a break above resistance, may result in a major upward move.
If this pattern continues to be the same, it would most likely shoot up to $140,000 as mapped out in the bull pennant.
At the moment of writing this, Bitcoin (BTC USD) is close to $94,448. It stands above the critical support area at the 0.786 Fibonacci retracement level of $86,897.
Ali pinpointed several levels of resistance at $106,777 and $120,801, with the long term target at $144,332 using the 1.618 Fibonacci extension.
But, a drop below $86,897 could negate the buying pressure and open the bears to drive the BTC down to $78,757.
The bull pennant formation is backed up by the current price pattern of Bitcoin. Contraction inside the triangle like formation suggests lower volatility, a condition that normally occurs before large trends.
Currently, traders are watching the $106,777 level very closely because a breakout above this level will strengthen the bull’s point of view.
Falling Wedge Pattern Indicates Short-Term Target For Price of Bitcoin
On the 1 hour chart of Bitcoin, there’s a falling wedge pattern, a bullish reversal pattern that can be the catalyst for a price bounce.
The Falling Wedge is defined by a series of lower highs and lows and if Bitcoin is to rise above the trendline, momentum could be expected.
Recent price actions indicate that Bitcoin has already breached this wedge pattern format and may headed towards $96,000 in the near future.
The present value of Bitcoin (BTC USD) is $94,368, which shows sideways movement after the breakout of the wedge. Experts also said that the $96,000 level was an important resistance level to break through.
If this resistance is broken and held, it will present a path to higher prices, but if the breakout cannot be maintained, Bitcoin may retest the levels at $92,000 – $93,000.
The RSI (Relative Strength Index) is sat just under the 50 level, which suggests that the price at the middle .
This indicates that both buyere and sellerrs are active in the market. However, the breakout from the wedge might tilt the scales in the direction of the bulls.
The $96,000 level may be in the Bitcoin’s reach if buying pressure rises, giving more hope to traders for further rise.
