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Bitcoin Price Prediction as Emerging Pattern Hints 12% Surge Ahead

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Bitcoin Price Prediction: The BTC price nearing a decisive breakout under the influence of pennant patterns

Bitcoin Price

Published 8 hours ago



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Bitcoin Price Prediction: Following a notable upsurge in January End, the Bitcoin price was relatively stable through this week. The daily candles with short bodies and longer ones reflect uncertainty and initiation from bulls and bears. However, a look at a lower time frame projects this consolidation as the formation of a bullish pennant pattern. Here’s how this pattern may influence the near future growth of BTC.

  • The pennant Pattern breakout will release the Bitcoin price from the current uncertainty.
  • The coin price above the 20-and-50-day EMAs provides additional support to market buyers
  • The intraday trading volume in Bitcoin is $13.9 Billion, indicating an 11.% gain.

Analyst Projects $31K as Firm Floor Based on 200WMA 

According to insights from the renowned analyst @planB, Bitcoin’s 200-week moving average (WMA) currently stands at $31,000, serving as a critical benchmark for the cryptocurrency’s price movements. Historically, during accumulation phases (marked in blue) and bull markets (indicated by orange/red), Bitcoin’s price has never fallen below its 200 WMA, suggesting that $31,000 could represent a solid floor price for Bitcoin. 

This observation leads to the speculation that Bitcoin may not drop to or below $31,000 again. Furthermore, the analyst notes that the 200WMA is on an upward trajectory, reinforcing the idea that Bitcoin’s value could be poised for sustained growth.

Should You Enter Now?

Bitcoin Price PredictionBitcoin Price Prediction
Bitcoin Price Prediction| TradingView Chart

After the initial sell-off post-ETF decision subsided, Bitcoin found its footing again, rebounding strongly from $38,500. This recovery propelled the digital currency upward by nearly 14%, reaching a high of $43,900. Yet, the emergence of overhead supply pressure has since directed the price into a sideways movement, heralding a phase of consolidation after the rally. 

This phase is encapsulated within a pennant pattern on the daily chart, characterized by converging trendlines. At the moment, BTC is priced at $42,957, showing a modest daily decrease of 0.2%. A breakout from the pennant pattern’s resistance could signify the continuation of the recovery rally, creating opportunities for new market entries. 

Should this breakout materialize, the trajectory for Bitcoin’s price could see it breaking above the $45,000 threshold, aiming for a target of $48,000 thereafter.

Technical Indicator

  • Exponential Moving Average: The coin price trading above the crucial EMAs(20, 50, 100, and 200) the short-term trend turns bullish.
  • Relative Strength Index: A daily RSI of above 60% could reflect the recovery trend in action.

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Sahil is a dedicated full-time trader with over three years of experience in the financial markets. Armed with a strong grasp of technical analysis, he keeps a vigilant eye on the daily price movements of top assets and indices. Drawn by his fascination with financial instruments, Sahil enthusiastically embraced the emerging realm of cryptocurrency, where he continues to explore opportunities driven by his passion for trading

The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.

Source: https://coingape.com/markets/bitcoin-price-prediction-pattern-hints-12/