Bitcoin remains under pressure when writing on April 2. However, an optimistic analyst points to a possible break above a formation that could push the price towards $80,000.

Will Bitcoin Breakout Higher Than the Pennant?

Despite the current dip, the analyst remains notes that technical analysis of the daily chart has printed a bullish pennant formation. If buyers step in and reject the current lower lows, the coin could rise above recent all-time highs and soar into new territory.

BTC in a pennant |  Source: Analyst on X
BTC in a pennant | Source: Analyst on X

Bitcoin is in a bullish pattern from an effort versus outcome perspective on the daily chart. The coin is down 5% in the last 24 hours and 7% in the last week of trading. The coin is trading around the $66,000 level, down 11% and under pressure.

Bitcoin is trading below the middle BB at spot prices, a technical indicator for measuring volatility. The outbreak means sellers are in control, at least in the short term. At this pace, sellers will likely continue, pushing the coin towards crucial support levels.

Bitcoin price rises on daily chart |  Source: BTCUSDT on Binance, TradingView
Bitcoin price rises on daily chart | Source: BTCUSDT on Binance, TradingView

Although the analyst is optimistic, BTC could find support at the March 20 low around $61,500. Further losses could trigger a sell-off, possibly towards $59,000 or lower.

Still, as the analyst notes, Bitcoin is in a bullish pennant formation. The pattern emerges when prices consolidate after periods of strong higher highs, as has been the case recently. As of the end of January 2024, BTC has risen almost 90%, from around $39,800 to a peak at an all-time high of around $73,800. After this rally, prices moved sideways and stayed within this consolidation, forming the pennant.

It’s a waiting game for BTC Bulls

For now, traders can only wait. What is clear, however, is that despite the optimism, sellers are in complete control. As mentioned, a bear breakout below the pennant could catalyze more losses towards $60,000. Conversely, rejecting lower lows strengthens the analyst’s outlook, providing a basis for higher highs towards $73,800.

Bitcoin supporters are in good spirits even with the current losses. As the currency corrects after rising for most of the first quarter of 2024, potential catalysts for even more gains in the coming weeks include the highly anticipated halve event. Assuming current demand continues, a 50% reduction in emissions could increase prices.

scoffs at accumulating Bitcoin ETF issuers |  Source: Lookonchain on X
scoffs at accumulating Bitcoin ETF issuers | Source: Lookonchain on X

Currently, institutional demand is slowing down. According to Lookonchain factsspot Bitcoin exchange-traded funds (ETFs) added 1,352 BTC on April 1.

Feature image from Canva, chart from TradingView

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