Bitcoin technical analysis is setting the scene for an explosive move above $150,000. The current price action of the cryptocurrency is flashing different patterns on the price charts, most of them are bullish. What’s more, these patterns are playing out in multiple time frames, giving analysts the opportunity to look at the future of cryptocurrencies from different perspectives.
In line with the uptrend that continues on the monthly chart, Bitcoin price is heading towards $158,000.
Bitcoin Bull Pennant Still On The Move
One of the key patterns that is being watched is the bullish pennant that is developing on the monthly time frame chart. This formation, often seen after a period of robust upward movement, suggests that Bitcoin is building momentum for its next substantial jump. Interestingly, this pattern was social media platform X by crypto analyst Titan of Crypto. The analyst, using a monthly Bitcoin/USD candlestick chart, highlighted a bullish pennant formation that has been playing out since September 2023.
The “pole” of the pattern was established by an extended rally that began in Q4 2023 and culminated with Bitcoin reaching a up-to-date all-time high in March 2024. BTC price then entered a consolidation phase that has lasted for the past six months. This consolidation phase was characterized by a series of lower highs bounded between the upper and lower trendlines, which formed a distinct pennant shape.
A successful breakout of this pattern to the upside would be linked to another extended rally on the monthly time frame. According to Titan Of Crypto, a bullish breakout would take Bitcoin to the moon. As for the price target, he highlighted a price of $158,000 by May 2025. To reach this level, BTC would need to break above resistances and enter up-to-date price territory. Specifically, Bitcoin would need to raise by around 170% from its current price over the next six to eight months.
#Bitcoin Bull Pennant still in play: $158,000 🎯
A powerful bull market is forming on the monthly chart.
If it works out #BTC you could catapult to the moon 🌕 photo: twitter.com/KLb6bfk1wj
— Crypto Titan (@Washigorira) September 14, 2024
Bull patterns galore
According to another analysis by Titan Of Crypto on the daily candle, Bitcoin has reclaimed both the Tenkan and Kijun indicators, which are key components of the Ichimoku Cloud. Furthermore, the Relative Strength Index (RSI) has successfully broken through a multi-month resistance trendline, suggesting that buying pressure is starting to raise.
Bitcoin is also starting to push 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, down 2.3% in 24 hours. After spending the entire weekend trading above that figure, Bitcoin broke below price level of $60,000 again. However, the level of $60,000 remains crucial for BTC.
Featured image created with Dall.E, chart from Tradingview.com
