Bitcoin’s technical analysis is setting up the stage for an explosive move above $150,000. The cryptocurrency’s current price action is flashing various patterns on the price charts, most of them bullish. Furthermore, these patterns are playing out across multiple timeframes, giving analysts different angles to examine in terms of the cryptocurrency’s future outlook.
According to a bullish pennant pattern that is playing out on the monthly timeframe, Bitcoin is gearing up for a move towards $158,000.
Bitcoin Bull Pennant Still In Motion
One of the key patterns being observed is a bullish pennant that is unfolding on the monthly timeframe. This formation, often seen after a period of strong upward movement, suggests that Bitcoin is building momentum for its next big leap. Interestingly, this pattern was social media platform X by crypto analyst Titan of Crypto. Using a Bitcoin/U.S. Dollar monthly candlestick chart, the analyst highlighted a bull pennant formation that has been playing out since September 2023.
The “pole” of the pattern was established through an extended rally that began in Q4 2023 and culminated in Bitcoin reaching a new all-time high in March 2024. Following this, the price of BTC entered a consolidation phase which has lasted for the past six months. This consolidation phase has been characterized by a series of lower highs bounded between upper and lower trendlines, which has created a clear pennant shape.
A successful breakout of the pattern to the upside would relate to another prolonged rally on the monthly timeframe. According to Titan Of Crypto, a bullish breakout would catapult Bitcoin to the moon. In terms of a price target, he highlighted a $158,000 price by May 2025. To reach this level, BTC would need to break above resistances and foray into new price territories. Particularly, Bitcoin would need to rally by about 170% from the current price between the next six to eight months.
#Bitcoin Bull Pennant Still in Play: $158,000 🎯
A massive bull pennant is forming on the monthly timeframe.
If it plays out #BTC could be catapulted to the moon 🌕 pic.twitter.com/KLb6bfk1wj
— Titan of Crypto (@Washigorira) September 14, 2024
Bullish Patterns In Abundance
According to another analysis by Titan Of Crypto on the daily candlestick, Bitcoin has reclaimed both the Tenkan and Kijun indicators, which are key components of the Ichimoku Cloud. In addition to this, the Relative Strength Index (RSI) has successfully broken through a multi-month resistance trendline that suggests the buying pressure is starting to mount.
Bitcoin is also beginning to push back above the Kumo Cloud in the Ichimoku system, although it is starting to experience a brief retest. If the breakout is confirmed, it could usher in renewed bullish momentum in the coming days for an upward move.
At the time of writing, Bitcoin is trading at $58,827 and has fallen 2.3% in 24 hours. After spending the entirety of the weekend trading above it, Bitcoin has broken below the $60,000 price level again. However, the $60,000 level remains crucial for BTC.
Featured image created with Dall.E, chart from Tradingview.com
