New Bitcoin all-time high by mid-week? What analysts are now predicting
The pseudonymous user tweeted on Monday that BTC/USD was being traded within an apparently bullish continuation structure. The pattern known as the “bullish pennant” is formed when an asset enters a consolidation phase after a strong upward movement. The sideways trend Bitcoin Era gives bulls enough time to prepare their upward strategy.
Eventually, the price breaks out of the range of the pennant – by as much as the previous upward movement known as the “flagpole”. The chart below shows the flagpole with the LH trend line. It is about $3,245 long.
Therefore, the pennant target of BTC/USD is about $3,245 above breakout level. This puts the pair at around $22,000-22,500 in the coming daily sessions.
“Bitcoin [looks] pretty bullish,” says the analyst. “Somehow, [with the] bullish pennant at 4 hours, [the coming 24-48 hours may give us a new [all-time high]. Extreme volatility is expected, so do not use high leverage.
Not everyone is so confident
The bullish analogy is in contrast to several declining theories based on Bitcoin’s on-chain data.
Ki-Young Ju, head of the data analysis platform CryptoQuant, has published a series of charts showing whales in a sell-out mood. The proprietary metric of the portal “Whale Ratio on Spot Exchanges” indicated a short-term downward trend.
“Historically,” writes Ju, “if this indicator rises above 95%, meaning 95% of deposits are from the top 10 deposits, the market is likely to fall or move sideways.”
However, some argue that metrics cannot represent the nature of whales. In 2020, there was an influx of many institutional players who accumulated Bitcoin to protect their portfolios from inflation.
With its fixed ceiling of 21 million coins, the crypto currency seemed to act as a hedge against a weakening US dollar.