Bitcoin has recently been on a correction path after nearly touching the $100,000 level, but technical analysis suggests that a bullish pattern could soon fuel a price surge towards even higher targets. A bullish pennant formation on the 3-day chart has caught the attention of crypto analysts, who see it as a signal that Bitcoin may be gearing up for a breakout. This could eventually propel the crypto currency toward a price target of $145,000, an ambitious forecast that’s gaining traction among analysts.

What is a Bullish Pennant?

A bullish pennant is a continuation pattern commonly seen during strong uptrends. It typically starts with a sharp price movement (the flagpole), followed by a consolidation phase (the pennant), and concludes with a breakout in the same direction as the original price move. In Bitcoin’s case, the pennant is forming after the coin’s significant rise, signaling that the crypto currency might be setting up for its next big move.

Crypto analyst Trader Tardigrade shared this technical setup on social media, highlighting the bullish potential of Bitcoin’s price action. He referred to the pattern as “Small Pennant, Big Target,” implying that while the consolidation phase might take time, the breakout could lead to significant price gains.

Bitcoin Price Action: Current Correction and Target Projections

As of now, Bitcoin’s price has returned to around the $96,000 mark after experiencing a brief pullback. The price had previously hit a low of $91,000 as traders took profits following the recent rally. Despite this correction, the bullish pennant formation is still intact, suggesting that the coin could soon continue its upward trajectory once the consolidation phase ends.

If Bitcoin breaks out from this pennant, the next major resistance target is $100,000. If this level is surpassed, analysts believe the crypto currency could eventually surge to $145,000, a price point that has gained attention from various crypto experts. For instance, Tony Severino, another well-known crypto analyst, has forecasted that Bitcoin’s peak for this cycle could be around $145,000.

What Does This Mean for Bitcoin’s Future Price Movement?

• Current Price: Bitcoin is currently trading at approximately $96,070, up by 0.5% over the past 24 hours but down by 3.3% over the last week.
• Short-Term Outlook: While the immediate focus remains on Bitcoin’s ability to consolidate and hold above the $91,000-$96,000 range, the bullish pennant formation suggests that it is preparing for a more substantial move.
• Long-Term Target: The $145,000 target is becoming a more common price prediction among analysts, signaling that Bitcoin could experience a major surge once the pennant completes its consolidation phase and the breakout occurs.

Final Thoughts

Bitcoin’s current price action has set the stage for a potential breakout, with the bullish pennant suggesting that the crypto currency could surge past the $100,000 mark and possibly reach as high as $145,000. However, the journey to these price targets won’t be without challenges, as Bitcoin must first clear resistance levels and maintain strong momentum.

For investors, watching the price closely and monitoring the consolidation phase of the pennant will be key in determining whether Bitcoin is indeed poised for a major move upward.