Bitcoin (BTC), which is a cryptocurrency, looks set to see a run-up to $100,000 as it breaks out from a bullish structure.
The Bull Pennant setup is a period of price consolidation with converging trendslines that form following a strong move higher. This causes the price to move in the opposite direction to its previous trend, usually at a level that is twice as large as the original large move.
Bitcoin weekly charts showed that the cryptocurrency was trending within a similar consolidation structure. Its price fluctuated inside a Triangle-like structure after a strong move higher (Flagpole).
BTC/USD weekly chart with Bull Pennant setup Source: TradingView.com
Bitcoin rose 13.5% last week and saw rising trading volumes. The cryptocurrency’s breakout move showed its potential to grow by as much as its previous trend (nearly $50K).
The Bull Pennant’s upside target is therefore $50,000 higher than the point of breakout ($48,000.
After many analysts had predicted Bitcoin’s six-digital value of $100,000, the technical setup showed that Bitcoin was now worth $100,000.
Geoffrey Kendrick (Global Head of Emerging Market Currency Research at Standard Chartered) predicted that Bitcoin would reach $100,000 in the early part of next year. Their bullish prediction was based on Bitcoin’s potential to be “the dominant peer–to-peer payment option for the global unbanked”.
David Gokhshtein (founder of PAC Global and Gokhshtein Media) also saw Bitcoin surpassing $100,000 by 2021. According to the executive, his bullish outlook was based on the availability of fiat liquidity in market which has prompted top Wall Street players to buy Bitcoin.
Gokhshtein stated to Business Insider that not everyone will be openly telling you they’re buying Bitcoin.
“There is too much money on the market. There is way too much money. Institutions didn’t come here to play for five seconds.”
After George Soros’ investment company revealed that it owned Bitcoin at a Bloomberg event, his statements were made. This sent the cryptocurrency skyrocketing. JPMorgan & Chase released a new report showing institutional investors prefer Bitcoin to Gold as an inflation hedge.
The banking giant had previously published a May study that predicted Bitcoin would reach $140,000 over the long-term.
Sentiment on the rise
On-chain indicators indicated a rise of holding sentiment among Bitcoin traders.
Related: Tesla could have made more selling cars than holding Bitcoin
According to data from blockchain analytics firm CryptoQuant, Bitcoin reserves across all crypto exchanges have fallen to their lowest levels in over a year. This decline demonstrates traders’ intent to keep their Bitcoin tokens close and not trade them for fiat/digital currencies.
All exchanges have BTC reserves. Source: TradingView.com
Thus, a decrease in Bitcoin balances on exchanges is often followed by a rise in BTC price.
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