Bitcoin Inches Closer To A Bullish Pennant Breakout: Analyst Shares How High BTC Can Go In This Cycle
As the highly anticipated Bitcoin halving draws closer, the cryptocurrency market is experiencing increased volatility and speculation. Despite the prevailing bearish sentiment last week, Bitcoin achieved its second-highest weekly close in history, signaling the market’s readiness for a rise.
What you'll learn 👉
Bullish Pennant Formation
Bitcoin has been consolidating around the previous cycle highs for the past month, forming a bullish pennant pattern on the price chart. This technical formation suggests that the cryptocurrency is preparing for its next leg higher, with a potential target of $82,000, according to trader Jelle.
The bullish pennant is a continuation pattern that typically occurs after a strong uptrend, signaling a brief pause in the market before the upward momentum resumes. Bitcoin’s holding above crucial support levels suggests a potential breakout to new all-time highs.
Institutional Involvement and Halving Impact
The upcoming Bitcoin halving, set to occur in less than 12 days, has the potential to significantly impact the market. The halving of the block reward for miners will lead to a decrease in the supply of new Bitcoins entering circulation, which has historically been accompanied by substantial price appreciation.
However, the presence of institutional investors, such as BlackRock, adds an element of uncertainty to the market. Some speculate that institutions may sell their holdings in anticipation of buying them back at lower prices post-halving. Others believe that the increased institutional involvement could lead to a more significant price pump compared to previous halving events.
Historical Halving Performance
A look at the historical performance of Bitcoin following each halving event reveals a pattern of diminishing returns:
- After the first halving, BTC pumped 9,900% (when few people knew about crypto).
- After the second halving, BTC pumped 2,900%.
- After the third halving, BTC pumped 700% (when crypto had gained mainstream attention).
While the percentage gains have decreased with each subsequent halving, the potential for substantial price appreciation remains, especially considering the growing institutional adoption of Bitcoin.
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Show more +Investment Strategies
For investors looking to capitalize on the potential bull run, a strategic approach is essential. CryptoBusy recommends picking the best coins and holding 20–50% of futures trading profits to reap the rewards during the bull run peak. By positioning themselves when prices are low, investors can potentially avoid the FOMO (fear of missing out) that often accompanies the later stages of a bull market.
Crucial Resistance and Price Targets
As noted by Michaël van de Poppe, Bitcoin is currently facing crucial resistance. A break above this level could lead to a continuation of the uptrend, with van de Poppe predicting a pre-halving price of $70,000 and a potential cycle top of $300,000.
The Bitcoin market is at a critical juncture, with the impending halving and the formation of a bullish pennant on the price chart. While the increased institutional involvement adds a layer of uncertainty, historical data suggests that substantial price appreciation could follow the halving event. For investors willing to take the risk, strategically accumulating positions during this period of volatility could yield significant rewards in the long run.
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