Bitcoin (BTC) has the potential to rise toward $75,000 by the end of this year as it breaks out of a classic bullish pattern and picks additional upside cues from its richest investors’ recent accumulation spree.
Bitcoin Bull Pennant breakout in play
BTC rallied over by 6% in the past 24 hours to reach a three-week high just shy of $66,500. In doing so, the cryptocurrency broke out of a consolidation range consisting of two diverging trendlines, a setup reminiscent of a Bull Pennant.
Bull Pennants are bullish continuation patterns that appear when an instrument consolidates in a Triangle-like price range following a strong move higher (called Flagpole). It typically ends up breaking out of the range to the upside, eyeing a profit target at length equal to the Flagpole’s size.
Bitcoin ticks almost all the boxes when it comes to confirming a Bull Pennant breakout. As a result, its likelihood of continuing its upside boom has risen, with its profit target sitting as high as the height of its Flagpole, which is over $12,300, as shown in the chart below.
The bull setup puts the BTC price on the way towards $75,000, after adding the Flagpole height to the point of breakout around $63,300.
Whales enter BTC accumulation spree
Bitcoin’s bullish setup received additional confirmation from an on-chain indicator by Santiment that tracks distribution/accumulation activities of the wallets with balances between 10,000 BTC and 100,000 BTC.
The metric highlighted that the so-called “Bitcoin whales” have been accelerating their buying spree.
Specifically, these entities accumulated 43,000 BTC (worth about $2.82 billion) in the last five days and about 92,000 BTC (over $6 billion) in the last 25 days, just as the price rallied to a record high near $67,000, corrected below $60,000, and surged back above $66,000.
The whale-led buying between the $60,000–67,000 area underscored their preparations for the times ahead, i.e., they anticipated Bitcoin to close beyond its previous record high.
In addition, on-chain analyst Willy Woo noted that Bitcoin continues to move off exchanges to cold storage in recent weeks. At the same time, the deposits of dollar-pegged stablecoin USD Coin (USDC) surged in the same period, underlining a classing buying pattern.
“Price was previously overheated, calling for a time of consolidation, since then we’ve seen significant buying from investors while [the] price has been sideways,” wrote Woo in a note to clients, adding:
“It’s been a healthy consolidation. Meanwhile, significant whale activity has been spotted which suggests BTC’s next move in price may come soon.”
Bitcoin is up by nearly 50% so in Q4, just 2% under its all-time high of $67,000.
Bitcoin Price Flash Crashed to $28.8K on Huobi: Over $2.5B Total Liquidations in 24 Hours
A flash crash transpired on Huobi as BTC went all the way down to $28,800 before recovering just as sharply. At the same time, the liquidations are well above $2.5 trillion on a daily scale as the entire market is deep in the red.
- As reported earlier, bitcoin, and the entire cryptocurrency market, went through one of its worst crashes in recent history. BTC plummeted by $16,000 in a day from around $58,000 to an intraday low of $42,000 on Bitstamp and most exchanges.
- However, other trading venues saw even more dramatic price drops. Such was the case with the BTC/USDC trading pair on Huobi, where bitcoin dropped all the way down to $28,801, as the picture below shows.
- Such events are known as flash crashes, in which the price of the underlying asset drops significantly lower on one (or more) exchanges compared to most and recovers immediately.
- As it happened in previous times that CryptoPotato reported, the price of BTC recovered just as quickly as it fell.
- Separately, the aforementioned market dump, which caused massive double-digit price nosedives for almost all coins, resulted in severe pain for leveraged traders.
- According to data from CoinGlass (formerly known as Bybt), the total liquidations are above $2.5 billion on a daily scale. In the past 4 hours alone, the liquidations are over $1.5 billion.
- The number of traders liquidated is just shy of 400,000, and the largest single liquidation order was worth $28 million and transpired on Bitfinex.
Bitcoin price analysis: Bitcoin hits lowest since mid-Oct, breaks below $50k; falling to $47k range
- Bitcoin price analysis is bearish today.
- BTC has fallen below the psychological mark of $50k.
- Bitcoin continues to look for support.
The Bitcoin price analysis report reveals a dramatic bearish situation as the Bitcoin fell below the $50,000 range today, and a sudden drift towards the $47,000 range has been observed as well. This looks like the strongest correction after May 2021, when Bitcoin closed below the EMA100, as the bearish pressure is immense and something the same is happeninging again. Speculations for BTC to go as low as $48,000, even down to 45,000 were already in the market, and the bearish indications for the past few days were already confirming them. But speculations are speculations, and rumors are rumors. What happened today was expected, but it came as a surprise to many in such a sudden plunge.
BTC/USD 1-day price chart: BTC looks for support
The 1-day price chart for Bitcoin price analysis shows a steep decrease in the coin’s value as it came down from $53,725 all the way down to $47380 today in just a few hours, losing more than $6000 in price value. A swing low towards $42,000 was also observed. The BTC/USD yet have to clench on to a support, as all previous support zones have fallen one by one. BTC has lost 16 percent value over the last 24 hours and around 12 percent over the past week. On the other hand, the trading volume has increased by 69 percent over the last day but the market cap suffered by 16.42 percent.
The volatility indicator shows comparatively high volatility, but BTC price has stepped far below the lower limit of the Bollinger bands. The lower limit at $50,834 represented support for BTC, which just fell and turned into a resistance zone now. The moving average (MA) is present at the $55071 mark.
The relative strength index (RSI) was already on a downwards slope giving bearish indications, but today it dived straight down and has just dipped into the oversold region, which is a strong bearish territory. As the RSI just touched index 29, the BTC has turned undervalued, so a little reversal in price function can be expected in the coming hours.
Bitcoin price analysis: Recent developments and further technical indications
The 4-hour price chart for Bitcoin price analysis shows the coin fell to $51,9668 during the first four hours today and then suddenly took a deep plunge towards $47,256. Bitcoin hasn’t found support yet as it continues to decline.
The volatility indicator started to diverge yesterday and took on to more steeper divergence today as the bearish pressure exceeded the expectation, and the price started falling tremendously, BTC price is trading below the lower limit of the Bollinger bands, and the moving average has also traveled low and is present at the $54,407 level. The RSI shows a critical situation as it has stooped low in the oversold region and is present at index 17, indicating high undervaluation at the moment.
Bitcoin price analysis: Conclusion
Bitcoin was first speculated to bounce of around $50,000 range, but that did not happen, then the second was 44,000 speculation for a bounce upwards, which seems correct at the moment, but as the coin hasn’t got the support yet, nothing can be said with confirmation, we can only assume for Bitcoin to float above $45,000 today.
Bitcoin Price Analysis: BTC rejects upside at $59,000, more downside to follow?
- Bitcoin price analysis is bearish today.
- BTC/USD spiked to $59,000.
- Closest support at $56,000.
Bitcoin price analysis is bearish today as we saw upside rejected after a quick rally today. Therefore, BTC/USD is not yet ready to set higher highs, and we will likely see more downside tested over the next 24 hours.
The cryptocurrency market has seen mixed results over the last 24 hours. The market leader, Bitcoin, declined by 2.29 percent, while Ethereum gained 3.55 percent. Terra (LUNA) was the top performer, with a gain of 12 percent.
Bitcoin price movement in the last 24 hours: Bitcoin retests $59,000 previous high, quickly rejects lower
BTC/USD traded in a range of $56,375.16 – $58,879.67, indicating strong volatility over the last 24 hours. Trading volume has increased by 19.75 percent, totaling $39.4 billion, while the total market cap trades around $1.08 trillion, resulting in market dominance of 41.17 percent.
BTC/USD 4-hour chart: BTC looks to test downside again
On the 4-hour chart, we can see the Bitcoin price action returning towards previous support over the last hours, likely leading to another retest of the $56,000 support.
Bitcoin price has traded in a clear bearish momentum for most of November. After a quick spike higher on the 8th of November, a new all-time high was set at $69,000. From there, BTC/USD saw a strong reversal over the next week.
Almost 20 percent were lost until strong support was finally found at $56,000 on the 19th of November. After a brief retracement, the support got retested again on the 23rd of November.
Meanwhile, further lower highs were set, indicating a bearish market structure still in play. This gave the momentum for bears to finally break another lower low to $53,500 last Friday.
After some consolidation over the weekend, the Bitcoin price saw a quick reaction higher overnight to Monday. Initially, the $58,280 mark was reached, with further higher highs reached with quick spikes higher over the last 24 hours.
Ultimately, the $59,000 previous high was not broken, meaning that another wave lower should follow over the next days.
Bitcoin Price Analysis: Conclusion
Bitcoin price analysis is bearish today as we saw the $59,000 resistance reject the market lower over the past hours. Therefore, BTC/USD is still not ready to break previous highs, likely leading to more downside later this week.
While waiting for Bitcoin to move further, see our articles on the Best Crypto Wallet 2021, Decred Wallet, and Ripple vs SEC.