As Bitcoin’s price breaks out of a typical bullish pattern, it appears ready to pursue a run-up towards $100,000.
The Bull Pennant setup, so named because it represents a price consolidation phase with converging trend lines that develop after a strong higher rally, indicates a price consolidation period with converging trend lines that emerge after a substantial rise higher.
It eventually causes the price to break out in the direction of its prior trend to a level that is generally as much as the size of the initial big move upward.
On weekly Bitcoin charts, the cryptocurrency looked to be moving inside a similar consolidation pattern, with its price oscillating within a triangle-like shape following a significant surge upward (Flagpole).
Bitcoin burst above the structure’s top trendline last week, gaining 13.5 percent amid growing trade volumes.
As a result, the cryptocurrency’s breakout move suggested that it could climb by the same amount as its prior trend.
Measuring from the point of breakout ($48,200), the Bull Pennant’s upside goal is thus $50,000 higher, i.e., over $100,000.
According to statistics supplied by blockchain analytics firm CryptoQuant, Bitcoin reserves held across all crypto exchanges recently fell to their lowest levels in a year.
The drop reflected traders’ desire to keep their Bitcoin tokens rather than swap them for other fiat/digital assets.
As a result, falling Bitcoin balances on exchanges are usually followed by an increase in the BTC price.