Bitcoin (BTC USD) May Be Forming a Bull Pennant, Analyst Ali Suggests, Targeting $140,000

This analysis presents an alternative perspective on Bitcoin's price trajectory. Ali predicts that the cryptocurrency could target $140,000 if the bullish pattern materializes.

Bitcoin (BTC USD) has been trading in a narrow range after breaking out of a falling wedge pattern on the 1 hour chart.

The breakout from the wedge pattern indicates a potential move to the upside, with the next key resistance level being at $96,000.

However, a failure to break and hold above this level could lead to a retest of the support levels at $92,000 – $93,000.

Bitcoin is currently trading at $94,368, having consolidated within a triangle formation on the 4 hour chart.

This formation is usually a bullish pennant, and a breakout from this pattern could see Bitcoin targeting $140,000.

On the other hand, a drop below the 0.786 Fibonacci retracement level at $86,897 could invalidate the buying pressure.

Bitcoin Dropped Below $93,000 As Bulls Struggle To Build Momentum

Bitcoin (BTC USD) price dropped below the critical support area at the 0.786 Fibonacci retracement level of $92,833 during the early trading hours on Monday.

This drop came after Bitcoin failed to break and hold above the $96,000 level following a breakout from a falling wedge pattern on the 1 hour chart.

The failure to sustain momentum after the breakout could be seen as a bearish development, and it may have opened the door for the bears to drive BTC down to the lower support levels.

However, Bitcoin managed to recover from these lows and was trading back above the $93,000 level at the time of writing.

Bitcoin buying pressure was invalidated if it dropped below $86,897

The 4 hour chart of Bitcoin showed that it was trading within a triangle formation, which is typically a bullish pennant.

A breakout from this pattern could see Bitcoin targeting $140,000, as per the 1.618 Fibonacci extension.

On the other hand, a drop below the 0.786 Fibonacci retracement level at $86,897 could invalidate the buying pressure and open the bears to drive the BTC down to $78,757.

Bitcoin’s current price action, alongside its consolidation, could play a critical role in determining the next breakout direction.