Bitcoin remains under pressure when writing on April 2. However, one optimistic analyst points to a potential breakout above a formation that could propel the price to $80,000.
Will Bitcoin Breakout Higher From The Pennant?
Despite the current dip, the analyst notes that technical analysis of the daily chart has printed a bullish pennant formation. If buyers step in, rejecting the current lower lows, the coin may surge above recent all-time highs and soar to new territories.
Bitcoin is within a bullish pattern from an effort-versus-result perspective in the daily chart. The coin is down 5% in the past 24 hours and 7% in the last week of trading. Trading at around the $66,000 level, the coin is down 11% from all-time highs and under pressure.
Bitcoin is trading below the middle BB at spot rates, a technical indicator for gauging volatility. The breakout means sellers are in control, at least in the short term. At this pace, sellers will likely continue to press on, pushing the coin towards crucial support levels.
Though the analyst is upbeat, BTC might find support at the March 20 lows of around $61,500. Further losses could trigger a sell-off, possibly towards $59,000 or lower.
Still, as the analyst notes, Bitcoin is within a bullish pennant formation. The pattern forms when prices consolidate after periods of strong higher highs, as has recently. From late January 2024, BTC has rallied nearly 90%, surging from around $39,800 to peaking at all-time highs of about $73,800. After this rally, prices moved sideways and continued to be within this consolidation, forming the pennant.
It’s A Waiting Game For BTC Bulls
For now, traders can only wait. However, what’s evident is that sellers are squarely in control despite the optimism. As mentioned, a bear breakout below the pennant could catalyze more losses toward $60,000. Conversely, rejecting lower lows cements the analyst’s outlook, providing a ground for higher highs towards $73,800.
Bitcoin supporters are buoyant, even with current losses. As the coin corrects after surging in the better part of Q1 2024, potential catalysts for even more gains in the weeks ahead include the highly anticipated halving event. Assuming the current demand continues, slashing emission rates by 50% might see prices edge higher.
Currently, institutional demand is slowing down. According to Lookonchain data, spot Bitcoin exchange-traded funds (ETFs) added 1,352 BTC on April 1.
Feature image from Canva, chart from TradingView
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