Bitcoin (BTC) has the potential to climb to $ 75,000 by the end of this year as it breaks out of a classic bullish pattern and picks up additional bullish signals from the recent wave of accumulation from its wealthiest investors.
Bitcoin Bull Pennant breakout at stake
BTC rallied 6% in the last 24 hours to reach a three-week high just under $ 66,500. In doing so, the cryptocurrency broke through a consolidation range consisting of two divergent trend lines, a setup reminiscent of a Bull Pennant.
Bullish pennants are bullish continuation patterns that appear when an instrument consolidates in a triangle-like price range after a strong upward move (called a flagpole). It usually ends up breaking out of range to the upside, targeting a profit target by a length equal to the size of the flagpole.
Bitcoin ticks almost all the boxes when it comes to confirming a Bull Pennant break. As a result, his probability of continuing his bullish boom has increased, with his profit target as high as the height of his flagpole, which exceeds $ 12,300, as shown in the chart below.
The bull setup puts the price of BTC on the way to $ 75,000, after adding the height of the flagpole to the breakout point around $ 63,300.
Whales enter a wave of BTC accumulation
Bitcoin bullish setup He received additional confirmation of a Santiment chain indicator that tracks the distribution / accumulation activities of wallets with balances between 10,000 BTC and 100,000 BTC.
The metric highlighted that the so-called The "Bitcoin whales" have been accelerating their shopping spree.
Specifically, these entities accumulated 43,000 BTC (worth around $ 2.82 billion) in the last five days and around 92,000 BTC (more than $ 6 billion) in the last 25 days, just as the price went up. to a record close to $ 67,000, corrected below $ 60,000, and rose again above $ 66,000.
The whale-led buy between the $ 60,000-67,000 area underscored their preparations for times to come, that is, they anticipated that Bitcoin would close beyond its previous record high.
Related: Bitcoin whale indicator detects multi-month accumulation trend as BTC watches $ 67K-retest
Additionally, on-chain analyst Willy Woo noted that Bitcoin continues to move from exchanges to cold storage in recent weeks. At the same time, USDC stablecoin deposits (American dollar) increased in the same period, underscoring a ranking buying pattern.
"The price was previously overheated, which required a moment of consolidation, since then we have seen significant buying from investors while [the] the price has been lateral " wrote Woo on a note to clients, adding:
"It has been a healthy consolidation. In the meantime, significant whale activity has been detected, suggesting that BTC's next move in price could come soon."
Bitcoin is up nearly 50% in the fourth quarter, just 2% below its all-time high of $ 67,000.
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