Bitcoin price in classic ‘Bull Pennant’ breakout as BTC whales go on buying spree

Bitcoin has seen a strong rebound in value, after its recent lows at $3,660. The price is now hovering over the important resistance level of $4,000. With increased demand and low supply on the board, Bitcoin continues to show good promise for 2018 as it breaks out from this downtrend channel to signal that bullish momentum is returning.

The “ethereum price” is an indication that the “Bitcoin price in classic ‘Bull Pennant’ breakout as BTC whales go on buying spree.” The “Bull Pennant” is a chart pattern that indicates a bullish trend.

Bitcoin (BTC) might reach $75,000 before the end of the year if it breaks out of a traditional bullish trend and takes further positive signals from its wealthiest investors’ current buying binge.

The breakout of the Bitcoin Bull Pennant is now in progress.

BTC has gained 6% in the last 24 hours, reaching a three-week high of slightly under $66,500. The cryptocurrency did so by breaking out of a consolidation range formed by two diverging trendlines, similar to a Bull Pennant setup.

Bull Pennants are bullish continuation patterns that arise after a big run higher and when an instrument consolidates in a Triangle-like price range (called Flagpole). It usually breaks out to the upside of the range, aiming for a profit objective at a length equivalent to the Flagpole’s size.

When it comes to verifying a Bull Pennant breakthrough, Bitcoin checks practically all the conditions. As a consequence, its chances of maintaining its uptrend have improved, with its profit goal being equal to the height of its Flagpole, which stands at nearly $12,300, as seen in the chart below.

Bull Pennant setup on the BTC/USD daily price chart. TradingView is the source of this information.

After adding the Flagpole height to the point of breakout at $63,300, the bull setup puts the BTC price on the road to $75,000.

Whales go on a BTC buying frenzy

Santiment’s on-chain indicator, which analyzes the distribution/accumulation actions of wallets with balances between 10,000 and 100,000 bitcoins, added to Bitcoin’s bullish setting.

The statistic revealed that so-called “Bitcoin whales” have been ramping up their purchases.

In the previous five days, these businesses amassed 43,000 BTC (worth around $2.82 billion) and 92,000 BTC (worth over $6 billion) in the last 25 days, as the price rose to a record high over $67,000, fell below $60,000, then stormed again above $66,000.

Chart depicting the accumulation and dispersion of bitcoin whales. Santiment is the source.

The whale-led purchasing in the $60,000–67,000 range signaled their readiness for the next months, implying that they expected Bitcoin to finish above its prior high.

Bitcoin whale indicator indicates multi-month accumulation tendency as BTC heads for a retest of $67K

Furthermore, on-chain specialist Willy Woo pointed out that Bitcoin has been moving away from exchanges and into cold storage in recent weeks. During the same timeframe, deposits of the dollar-pegged stablecoin USD Coin (USDC) increased, indicating a classing purchasing tendency.

Net flows on the Bitcoin spot market. Willy Woo is the source of this information.

“We’ve observed strong purchasing from investors when [the] price has gone sideways,” Woo said in a message to clients, adding: “Price was previously overheated, calling for a period of consolidation.”

“It’s been a good reorganization. Meanwhile, substantial whale activity has been seen, indicating that BTC’s next price rise may be imminent.”

In Q4, Bitcoin is up over 50%, sitting only 2% below its all-time high of $67,000. 

The author’s thoughts and opinions are completely his or her own and do not necessarily represent those of Cointelegraph.com. Every investing and trading choice has risk, so do your homework before making a decision.

The “why did bitcoin spike” is a question that has been asked by many people. The answer to the question is that there are some big whales who have bought up a lot of bitcoin and they are all buying at once.

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