Bitcoin (BTC) may rise to $ 75,000 by the end of this year as it breaks the classic bullish pattern and picks up further bullish signals from the recent hoarding of the richest investors.

Outbreak of Bitcoin bullish pennant in the game
BTC has risen more than 6% in the last 24 hours, reaching a three-week high of $ 66,500. At the same time, the cryptocurrency broke out of the consolidation area, consisting of two divergent trend lines, resembling a bullish pennant.

Bullish pennants are bullish continuation patterns that appear when an instrument is consolidated in a triangular price range after a strong upward movement (called a flagpole). This usually ends up with him going out of range and looking at a profit measure equal to the size of the flagpole.

When it comes to confirming the Bull Pennant hack, Bitcoin marks almost every point. As a result, the likelihood of it continuing in a bullish way has increased, with the profit target rising to the top of the flagpole, which is above $ 12,300, as shown in the chart below.

BTC / USD daily price chart with Bull Pennant setting. Source: TradingView
A bullish setup brings the BTC price closer to $ 75,000 after adding a flagpole rally to a breakout point of around $ 63,300.

Whales on their way into budding Bitcoin accumulation
Bitcoin’s bullish setup has received further confirmation from a network indicator from Santiment, which tracks distribution / accumulation activities for wallets with balances between 10,000 and 100,000 BTC.

The scale showed that the so-called “bitcoin whales” buy them quickly.

Specifically, these organizations have accumulated 43,000 BTC (worth around $ 2.82 billion) over the last five days and around 92,000 BTC (over $ 6 billion) over the last 25 days, while the price rose to a record high. at around 67 000. dollars, after correcting to the level below 60 thousand dollars, and rose again above 66 thousand dollars.

Accumulation / distribution diagram of bitcoin whales. Source: Santiment
Buying whales in the $ 60,000-67,000 region confirmed their readiness for the foreseeable future, meaning they expected bitcoin to close after the previous record high.

Related: Bitcoin Whale Indicator Detects Multi-Month Accumulation Trend with $ 67K Retesting of BTC

In addition, network analyst Willie Wu noted that Bitcoin has moved exchanges to cold storage in recent weeks. Meanwhile, dollar-denominated stablecoin deposits, the USDC (USDC), rose over the same period, confirming the classified buying pattern.

Net BTC exchange spot flows. Source: Willie Wu
“In the past, the price was overheated, which took time to consolidate, and since then we have seen significant purchases from investors while [] the price has been sideways,” Wu wrote in a note to customers, adding:

“It was a healthy consolidation. Meanwhile, there has been significant whale activity, indicating that the next step in the price of Bitcoin may come soon. ”
Bitcoin is up around 50%, so it is only 2% below the highest level of $ 67,000 in Q4.

Source: CoinTelegraph

LEAVE A REPLY