Bitcoin bulls should prepare for a new rally to hit record highs according to an independent analyst so let’s find out more in today’s bitcoin news.
The anonymous analyst tweeted that the BTC/USD pair is trading inside a bullish continuation structure dubbed as the “Bull Pennant” which is a pattern that forms as an asset enters a period of consolidation after a movie to the upside. The sideways trend gives bulls enough time to prepare for their strategy.
Eventually, the price will break out of the Pennant formation by as much as the previous upside move which is known as the “Flagpole.” The charts show that they denote the flagpole with the LH trendline which is about $3,245 long. Therefore, the pair’s pennant target sits at $3,245 above the breakout level. this level could set the pair for another increase to $20,000 or higher, in the upcoming daily sessions:
“Bitcoin [is] looking quite bullish. Somewhat, [with the] bullish pennant on 4 hr, [the upcoming 24-48 hours can give us new [all-time high]. Extreme volatility expected, so don’t use high leverage.”
The bullish analogy seemed in contracts to a few bearish theories based on the on-chain data for BTC. From here, it looks like bitcoin bulls should prepare for a new rally as Ki-Young Ju, posted a series of charts that show the whales are in a sell-off mode, with the “Whale Ratio on Spot exchanges” metric showing a short-term bearish trend line after jumping above the historical level. Ju noted:
“Historically, if this indicator goes above 95%, meaning 95% of deposits are from the top 10 deposits, the market is likely to be bearish or going sideways.”
Some argued that the metric didn’t portray the nature of the whales since this year, there was an influx of many institutional players that accumulated BTC in order to get protection for their portfolios from inflation. With the limited supply cap of 21 million, the crypto asset acted as a hedge against the US Dollar which is still crashing. Another analyst exemplified Nasdaq-listed public company Microstrategy which purchased $475 million worth of BTC in three rounds and said:
“MicroStrategy is one of these new whales eating up all the available supplies from old whales. Market participants composition is changing. We break $30,000 before 2021.”
The consensus across the BTC market looked bullish as well and many noted the Federal Reserve’s quantitative easing and lower interest rates policies as the major driver to the upside in the crypto market. Holger Zschapitz, Germany-based financial analyst:
“FOMO among big investors may support Bitcoin’s polarizing rally. Digital asset is luring institutions like asset managers. More strategists are covering Bitcoin to feed client interest.”
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Stefan has been writing articles for DCForecasts since 2016 in-house full time. As one of our main cryptocurrency writers, he focuses on covering the latest cryptocurrency news, technical charts, price analyses of coins and press releases. When he is not exploring and covering the latest topics in crypto, you can find Stefan playing basketball, tennis or cycling.
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