Key takeaways:
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A Bitcoin price pullback to $115,000 is possible before continuing the uptrend.
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A bull pennant suggests that the BTC price could rally by 15% to new highs above $136,000.
Bitcoin (BTC) price has spent most of the week pinned below $120,000, which many analysts have labelled as a key resistance zone. However, a new technical setup suggests that BTC is likely consolidating within a bull pennant before resuming its uptrend.
Bitcoin “bull pennant” targets $136,000 and beyond
Bitcoin rallied by 14% between July 8 and July 25 to reach an all-time high of nearly $123,000. Since then, BTC price has pulled back, consolidating between the all-time high and $115,000.
The latest data from Cointelegraph Markets Pro and TradingView shows BTC trading inside a bull pennant, suggesting that the final “explosive phase” is next.
Bitcoin is in a “bull pennant breakout targeting $140,000,” said popular crypto Titan of Crypto in a Monday post on X.
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A bull pennant is a continuation pattern that occurs after a significant rise, followed by a consolidation period at the higher price end of the range.
“Welcome to the final and most explosive phase of the bull run.”
A positive breakout from the pennant could potentially lead to the next leg up for Bitcoin, measured at $136,500 or 15% from its current price level.
It is important to note that the success rate of a bull pennant is only around 54%, which makes it one of the least reliable patterns.
However, another classic pattern was spotted by Merlijn The Trader, a Bitcoin analyst, who says a BTC price target of $140,000 is in play based on an inverted head-and-shoulders pattern on the three-day chart.
“The breakout is real. Momentum is undeniable. $140K is the measured target.”
Other projections are a bit more ambitious, with one analyst citing a daily chart golden cross projecting BTC price to $155,000.
Popular trader Marcus Corvinus made a modest prediction, saying a symmetrical triangle breakout targets $125,000.
Bitcoin could drop to test support first
With the bulk of Bitcoin’s apparent sell-side liquidity absorbed during the move to $122,000, some analysts warn that a brief flush down to test $115,000 as support could be the next move for BTC price.
“Weekend low liquidity swept!” Popular analyst AlphaBTC said that Bitcoin could drop a little lower to grab the liquidity at around $115,000.
The BTC liquidity map shows that the order book is priming for that, with bid clusters stacked between $115,000 and $116,100.
“ A little lower and bulls will likely have the fuel needed to push higher once again.”
Fellow analyst Daan Crypto Trades said BTC price has stalled near its all-time high and noted that the bulk of the volume has been traded around $118,000, which is the middle level of the current range.
The analyst told his followers to watch the range low at $115,000 as support and the range high at $121,000 as resistance.
“Keep an eye out for these local highs and lows for a potential liquidity sweep.”
This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.