Bitcoin ‘Daily Pennant’ Targets $125,000

Bitcoin (BTC) price recently recorded a new weekly high for the second week in a row after posting a 12% gain over the past seven days. The crypto asset is up 31% on the month as prices continue to strengthen near the all-time high (ATH) range.

With technical analysis showing a crash outlook at all times, one analyst believes another 40% rally is possible in the next few days.

Bitcoin's “daily pennant” targets $125,000

Bitcoin rallied 40% between November 4th and 13th after BTC's price recovery began after post-$80,000. Since reaching the all-time high (ATH) at $93,450, the value has fluctuated between the ATH and $87,000.

During that period of consolidation, SuperBitcoinBro, an anonymous technical analyst, noted that BTC had formed a bullish trend on the daily chart.

A bullish pennant is a continuation pattern that occurs after a high price rise, followed by a period of consolidation at the high price end of the range.

A positive breakout from Pennant could lead to the next leg for Bitcoin, measured at $125,000 or 40% from the current price point.

However, it is worth noting that the Bullish Pennant's success rate is only around 54%, making it one of the least reliable styles.

Additionally, Kush Alamzadeh, a Bitcoin trend analyst, predicted a Bitcoin price target range between $130,000 and $145,000 by the end of 2024.

Worldzadeh's long-term view is based on the Elliot wave theory and according to the analyst, Bitcoin is currently in the 5th wave extension, “The steepest part of this move is ahead of us.”

Related: BTC Price Closes to $90K Weekly — 5 Things to Know in Bitcoin This Week

Coinbase premium at $90,000 shows uncertainty

After Bitcoin entered a price breakthrough above $73,880, the move between $75,000 and $90,000 was supported by strong support at the top of the Coinbase premium, which surged to its highest level since Q2.

However, since then, the premium index has cooled, indicating that U.S. retail investors are currently shrinking. CryptoQuant's Quick View Insights echoes the same sentiment, noting:

“Coinbase seems to be taking a breather to decide its next move. Once Coinbase gains its premium momentum, conservative traders would be wise to step in.”

This coincides with the fact that Bitcoin transaction volume has reached a new three-year high below $100,000. Ki-Yang Ju, CryptoQuant's CEO, believes that retail FOMO could create “exit liquidity” for whales under the $100,000 threshold. However, an onchain analyst emphasized that these corrections are just dips and not the start of another bear market.

On the lower timeframe, Bitcoin has repeatedly broken above the uptrend line and is currently facilitating another test. The price has found support from the 50-day and 100-day EMA levels, and is currently hovering above the $90,000 psychological level.

A break above $93,421 and a significant close signal another price breakthrough period for BTC, with $100,000 as its immediate target.

Related: BTC price ‘issues' include $70K dip despite Bitcoin well stock

This article does not contain investment advice or recommendations. Every investment and business activity involves risk, and readers should do their own research when making a decision.