Bitcoin Price: $140K Bull Pennant Or Final Dump?

Bitcoin (BTC) was trading at the price of $94,426.18 at press time with a daily trading volume of $42 billion.

Over the past 24 hours the price has risen slightly by 0.82%, and it has risen 3.59% in the last week. With a market cap of $1.87 trillion, cryptocurrency has a circulating supply of 20 million BTC.

According to crypto analyst Rekt Capital, Bitcoin is in a price discovery correction following its first crossing of the $100,000 level.

Looking at historical trends, you will see that there’s a pattern of corrections happening after significant price moves in Bitcoin.

In 2013 the cryptocurrency lost 75% of its value over 13 weeks. Similar thing happened in 2017 and 2021 where Bitcoin fell down by 34 percent and 31 percent within 3 and 4 weeks, respectively.

This year’s correction has been less severe, with Bitcoin down 15% over the past four weeks. Commenting on this, Rekt Capital noted,

“Depth-wise, this current -15% Price Discovery Correction has been much shallower by standards of history.”

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Despite the duration of this correction, it is in keeping with previous cycles and therefore could be in its final stages.

Potential $140K Breakout Emerges Amid Bull Pennant Formation

Some analysts believe Bitcoin is forming a bearish head and shoulders pattern. Crypto analyst Ali (@ali_charts), on the other hand, thinks Bitcoin is maybe constructing a bull pennant—a regular sign up trend movement.

According to Ali, the current consolidation phase resembles a triangular pennant following Bitcoin’s earlier strong price surge.

If this pattern holds, Bitcoin could be preparing for a breakout toward $140,000. Ali stated,

“What if instead of the head-and-shoulders top everyone is talking about, #Bitcoin $BTC is actually forming a bull pennant, targeting $140,000 next?”

Fibonacci retracement has been used identify key support levels. In that case, the $90,000 level would become a huge critical support zone, with $86,000 and even $79,000 if the price consolidates from here.

A breakout from the pennant may signal that Bitcoin will reach new all time highs.

Historical Patterns Suggest Long-Term Growth For BTC Price

Bitcoin’s price action has been highlighted by veteran trader Peter Brandt as a time based pattern.

Bitcoin’s current correction, he explained, has mirrored similar phases throughout the history of Bitcoin.

He said the corrections were very typical and that major Bitcoin rallies are commonplace after such selloffs.

Crypto trader Nilesh Rohilla is the other to have pointed out parallel between the ongoing price action and previous cycles.

According to Rohilla’s analysis, the calm Bitcoin has enjoyed recently could be followed by a rally from February 2024 as the coin behaves in line with historical patterns.

Brandt agreed, and said that the next fundamental price moves may not occur until mid 2025, when larger market cycles normally form.

Being in a consolidation phase, Bitcoin leaves analysts evenly divided on where it goes next.

There’s an eventual breakout to higher levels on potential bull pennant formation, with $140,000 as a possible target.